For the last 8 years I have been staying at my flat which is presently owned by my grandmother (paternal). She has now decided to gift me this flat. I am US citizen and plan to eventually move back to my home country.
If I sell this property will I be subject to capital gains? If so by what percentage? How can I avoid excessive taxation?
23 October 2020
It would be better to contact and consult a local prudent chartered accountant / taxation lawyer for appreciation of facts/ documents and professional advise. or Post your query in CA Club for obligation.
24 October 2020
1. A Non-Indian citizen holding foreign passport, can accept Gift of immovable property ONLY AFTER obtaining relevant permission of RBI. There are several other parameters applicable on such transactions.
2. Capital Gains of nearly 35% is payable IF sold within Three years of date of Gift Deed. However, this can be 100% exempted IF 100% proceeds are invested in another immovable property within Two years.