Long term Capital Gains on sale of real estate are taxed at 20%, plus a cess of 3%, if the sale fulfils certain conditions. If you sell a property that was gifted to you, or that you have inherited, you will still be liable to pay capital gains tax on it.

How can NRI sell their property in India?

An NRI can sell his/her residential or commercial property to either a person residing in India, another NRI or a person of Indian origin (PIO). One can also mortgage the property to an authorised real estate dealer or a financial institution dealing with home loans.

Does an NRI have to pay tax in India?

An NRI, whose taxable income exceeds Rs 15 lakh stays in India for 120 days or more, then such an individual further needs to check whether his stay in India is 365 days or more in the immediately preceding 4 years. In such a case, he will be treated as a resident individual for income tax purposes.

What are the tax implications of selling a property in India?

Tax implications of selling property in India Under theIncome TaxLaw in India, income from selling property is taxed under the head ‘capital gains’. Taxability on capital gains will be based on the period of holding of the property. Capital gains are taxable in the year of property transfer irrespective of receipt of sale consideration.

What is the NRI Guide to selling property in India?

NRI’s guide to selling property in India. While in most cases, a person who qualifies under one would qualify under the other, it is better to review both definitions. If you sell the property after 3 years from the date of purchase, you will be liable for long term capital gains tax of 20 per cent.

When do you have to pay capital gains on sale of property in India?

If you are selling your property in India within two years of purchasing it, you will be liable to pay short-term capital gains, depending on your income slab. If the property is sold after two years, an NRI has to pay long-term capital gains, at 20 per cent.

Can a non resident Indian sell a property in India?

Sale of property purchased as a non-resident Indian If the property was purchased out of rupee resources, that is, income earned in rupees, or the home loan is repaid by a relative who is a resident of India, the amount must be credited in the NRO account.