LTCG on property sale for NRI

Income Tax
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

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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.