What are the tax implications for NRIs who want to sell a property in India?

Can NRI sell their property in India?

An NRI can sell his/her residential or commercial property to either a person residing in India, another NRI or a person of Indian origin (PIO). … However, if the property is an agricultural land or farming development, it can only be sold to a resident Indian citizen.

What is TDS for NRI selling property in India?

In the case of NRI sellers, the buyer needs to deduct TDS at the rate of 20% post indexation in case of long-term capital gains. If the property is sold before 2 years, short-term capital gains tax will be applicable. In case of short-term capital gains, TDS must be deducted at the rate of 30%.

Do I need to pay tax if I sell my property in India?

If you are planning to sell your property, you’ll have to pay capital gain tax on the profit earned after considering the inflation and indexed cost of acquisition. … If you’re selling a property in India, the profits you earn are called Capital Gains.

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Can NRI sell property in India without going to India?

If you are a Non-Resident Indian, you can sell the property to a Resident Indian without restrictions. If the buyer is a Non-Resident Indian or a Person of Indian Origin (POI), you may need the approval of the Reserve Bank of India (RBI). You are not allowed to sell the property to a foreigner.

What is the TDS rate for NRI?

NRI TDS|TDS on Non-Residents of India |What is Section 195 of Income Tax | YES BANK

Type of Income TDS Rates (%)
Profits the NRI obtained from long-term capital gains under Section 115E 10%
Long-term capital gains 10%
Short term capital gains under section 111A 15%
Any other income an NRI derived from long-term capital gains 20%

Do NRI pay TDS on property?

The TDS on purchase of property from NRI shall be deducted regardless of the transaction value of the property. Even if the price of the property is less than Rs. 50 lakh, the TDS shall be deducted.

How can I repatriate money from the sale of property in India?

How can I repatriate money from the sale of property in India? NRIs or PIOs are allowed to repatriate the sale proceeds of immovable property in India through their NRO Accounts. There are certain documents required to certify that all the taxes are paid on the proceeds.

Who pays TDS property?

TDS has to be deducted by the buyer on the entire amount that is paid or credited to the seller when the amount exceeds Rs 50 lakh. For example, if a property is bought for Rs 70 lakh then TDS has to be deducted on the entire amount–that is Rs 70 lakh, not on just the Rs 20 lakh that exceeds the Rs 50 lakh threshold.

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Can I sell my property in India and bring money to Canada?

Since i live in Canada now, do i need to make someone power of attorney for both Sale of the property and transferring of the money in Canada. You will need to work this with a bank in India. Normally as an NRI, you are allowed to take funds out of India. However, you will have to pay cap gains taxes in India.

How do I avoid capital gains tax when selling a house in India?

How to save tax on property sale?

  1. Holding period for capital gains.
  2. Benefits under Section 54 on purchase of new property.
  3. Indexation benefits on capital gains on sale of a property.
  4. Exemptions under Section 54 EC on purchase of specific bonds.
  5. Exemptions under Section 54GB.
  6. Setting off gains against losses.

How can I avoid capital gains tax when selling a property in India?

Exemptions from your Gains that Save Tax Section 54F (applicable in case its a long term capital asset)

  1. Purchase one house within 1 year before the date of transfer or 2 years after that.
  2. Construct one house within 3 years after the date of transfer.
  3. You do not sell this house within 3 years of purchase or construction.

How much tax I have to pay if I sell my property?

If you sell after three years, the profit is treated as long-term capital gains and taxed at 20% after indexation. Indexation takes into account the inflation during the holding period and accordingly adjusts the purchase price, thereby slashing the tax burden for the seller.

What is the tax rate for NRI in India?

Tax Slab for NRIs for AY 2021-22

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Income Tax Slab Rate
Up to Rs. 2.50 lakh Nil
Above Rs. 2.50 lakh to Rs. 5.00 lakh 5% of (taxable income – Rs. 2.50 lakh); in case, taxable income is up to Rs. 5 lakh, the tax payable shall be nil on account of Tax Relief under Section 87A

Does an NRI have to pay tax in India?

If your status is ‘NRI,’ your income which is earned or accrued in India is taxable in India. … Income which is earned outside India is not taxable in India. Interest earned on an NRE account and FCNR account is tax-free. Interest on NRO account is taxable for an NRI.

What happens when NRI sells property in India?

Capital gains tax for property sold by NRI

In case the transaction qualifies to attract long-term capital gains (LTCG), a tax rate of 20% will be applicable on the sale. Do note here that the NRI seller will have to pay 21% tax on the sale amount and not the profit money as LTCG.