Income Tax

FEMA/RBI Regulations

Sale of Immovable Property, Capital Gains

NRIs acquire immovable property in India. This acquisition is either by way of investment by NRI himself or by way of inheritance from their parents/grand-parents etc. In lots of cases, NRIs wish to sell this immovable property due to two reasons. One it is fetching them good return. And two they are settling outside India, hence, they donot wish to hold this immovable property any more. Consequently, there re lots of sale of immovable property transactions happening by NRIs/PIOs. With this, lots of tax issues arise before them. Certain questions which generally come to their mind are:

The same can be understood by understanding the salient features of tax provisions wrt sale of immovable property:

Salient Features wrt Sale of Immovable Property:

Computation of Capital Gains

Particulars INR
Sale Consideration 50 Lac
Less: Indexed Cost of Acquisition 30 Lac
Less: Expenses wrt Sale (eg. broker fee) 2 Lac
Capital Gains 18 Lac