Usually, non resident Indians are not really governed by the tax regulations existent in the country. However, if they want to sell or purchase a property in the country, then they would be required to pay taxes on the capital gains. For NRIs, the best way to approach the sale or purchase a property in India would be to be guided by legal professionals associated with the Purchase and sale of property for NRI in Delhi. They are the ones who should be approached because they are intimate with nuances such as Long Term Capital Gains, tax implications in case of inheritance and ways to save tax on capital gains etc.
Purchase and Sale of Property: What Should NRIs know?
In the very first place, an NRI should ideally understand that if he wants to sell or purchase a property in India then he would have to pay taxes on the Capital Gains. The amount of tax payable depends on whether it’s a long or short term capital gain. Long Term Gain is when the property is sold after a period of 2 years right from the date it was owned. Short Term Capital Gains are associated with properties held for two years or less.
When the property is inherited, the individual selling the property needs to consider the date of purchase from the original owners so as to determine whether it entails Long Term or Short Term gains. The cost of the property in case of inheritance is the cost which is incurred to the previous owner.
NRIs are also allowed substantial tax exemptions under section 54 and 54EC applicable to Long Term Gain from the Purchase and Sale of Property in New Delhi, India. Make sure that you are getting in touch with lawyers who can guide you in accordance.