LTCG on property sale for NRI

Income Tax Income from Capital Gains
1

I am NRI taxpayer (Indian citizen, holding Indian passport) owning a property that I acquired in 2007 and am about to sell it.

  1. Can I choose between 20% with indexation vs 12.5% without indexation on the LTCG from the Sale of my property purchased in 2007?
  2. Does the provision to carryover capital loss from Sale of property for the next 8 years and adjusting it with capital gain arising from another property within that period still applicable ?
2

Hi @chaandhu

Yes, for any sale of property transaction which takes place on/after 23 July, 2024, there is an option to select the tax rate which ever is more beneficial to the taxpayer and thus you can choose to pay tax either @20% with indexation or @12.5% without indexation benefits.

However, it is to be noted that here that this option is applicable only for the computation of tax payable on capital gains. As far as set-off and carry forward is concerned, the same shall be computed without indexation benefit only for sale transactions on/after 23rd July, 2024.

Hope this clarifies. For further concerns, please connect with me on Instagram @FinTaxSnippets.

Thanks,
CA. Pulkit Garg

1 Like
3

Thanks @garg.pulkit131 - your explanation clarifies what I was looking for.

cheers,
Prashanth

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4

@garg.pulkit131 @chaandhu,

This amendment was recently announced where taxpayers were given a choice to select between 20% taxation with indexation and 12.5% taxation w/o indexation. However, as far as I know, this option is only available to resident individuals and not NRIs.

Yes, you’ll be able to carry forward the losses and adjust against other LTCG in 8 subsequent years.

5

Hi,
Does any one know tax implications for NRIs selling property in India?
Arun

6

Hi Surbhi,
So what are the options for NRI?
Thanks,

Arun

7

Hey @A_Prakash ,

Non-residents will only have one option for land or building sold on or after 23rd July, 2024, which is to tax the capital gains at the revised tax rates.

For properties held for more than 24 months, the tax rate will be 12.5% otherwise it will be taxed at applicable slab rates.