NRI Sale of Property – Taxation – CA Services In Delhi

Lots of Indians/Indian Origins are residing abroad, thereby taken the status as NRIs/PIOs. These NRIs/PIOs either hold immovable property in India or they inherit the same from their parents/grandparents. Since these NRIs/PIOs are living abroad, and have been settling there, therefore, they want to sell this property. Another purpose of selling property can be to buy property in some other vicinity which they will be able to use. Here, we provide as one window service to NRIs/PIOs. With respect to sale of immovable property in India by NRI/PIO etc., as per our experience NRIs/PIOs generally look for following services :

  • Before Sale Services : Vetting of Sale Agreement and other advisory within the framework of Income Tax Act as well any other law. Advisory tips write date to be chosen for sale deed, bank account where to receive/deposit the sale consideration.
  • Computation of Capital Gains : Verification of documents of purchase, improvements made, sale and expenses incurred during purchase as well sale of property. Applying relevant indexation to cost, improvements etc. Computing Capital Gains as per the provisions of Income Tax Act.
  • Capital Gains Exemption Claim : Capital gains arising on sale of immovable property attract Capital Gains Tax under the Income Tax Act Provisions. This tax can be saved by investing money in capital gain tax saving schemes e.g. buying new house, buying bonds, depositing money in capital gain tax saving bank account etc. We assist our NRI/PIO clients in finding various tools for tax saving on these capital gains.
  • Computation of Taxes and Its Payment : Post tax saving plannings etc, there need to calculate taxes, if any payable. We calculate those taxes. if some taxes are payable, we assist in depositing of same as per tax law to avoid any interest/penal liability. Once the due taxes are paid, the balance funds are free for any use including Repatriation outside India.
  • Repatriation of Free Funds Outside India : Post tax planning, tax payment etc, NRI/PIO approaches his/her banker for repatriation of funds outside India. As per RBI regulations, generally these funds are eligible for repatriation under USD One Million Scheme. We do provide our advisory on same. At this point, on requiring the Banker to remit funds outside India, the banker require the Remitter to provide certain documents as per the RBI Regulations, which includes i.e. a CA certificate (in Form 15CB) and RBI Acknowledgement in Form 15CA, Application in form A2 etc. We assist our NRI/PIO clients in issuing CA Certificate, completing these documents and getting the funds remitted outside India.
  • Filing ITR with IT Dept : In relation to capital gains calculation, investments made, taxes paid etc, an ITR is required to be filed with the Income Tax Department in India. Taking into consideration all other incomes earned in India, we provide the services of preparation and filing of ITR with IT Department in India.
  • General Advisory : In addition to above, we also provide other general and specific advisory wrt Income Tax/FEMA in relation to sale/repatriation transactions of immovable property.
  • Record : We also advise our NRI/PIO clients to obtain, arrange, secure various documents, which may be important in any future enquiry under any law e.g. Income Tax Act. Further, we also keep a record of document obtained by us from client for any future requirement.

S Lohia & Associates Chartered Accountants 
Address : 1301, Naurang House (13th Floor),
21 Kasturba Gandhi Marg,
Connaught Place, New Delhi 110 001.
Tel No. : +91-11-43505250, 66095250
Tel Fax No. : +91-11-43505250
Mobile No. : 9810353219, 9910353219
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