Shika (Student) 11 August 2011

Capital gains/ rupee to usd conversion

Hi,

First of all thanks you for having this forum and I hope my questions will be answered here.

I am a US citizen and recently sold a property in India that was gifted to me by my Dad(he had the property for more that 30 years). We sold it within the month of gifting it to me. Does it come under long term gains or short term gains? and how much percentage of taxes do I need to pay? In India i do not have any other income other than the gains from the sale of this property.

The second part of the question is how can I convert the money in Rupees to USD? I plan to purchase a property in the US so would like to get the money to the US. So what is the process we need to follow?

Thanks in advance

Shika

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A V Vishal (Advocate) 11 August 2011

Where the capital asset became the property of the assessee under a gift or will, the cost of acquisition of the asset shall be the cost for which the previous owner of the property acquired it, as increased by the cost of any improvement of the asset incurred or borne by the previous owner or the assessee, as the case may be, till the date of acquisition of the asset by the assessee. Hence the sale attracts Long term Capital Gains. The tax is 20.6% on the profit and depends on certain calculations which require further data. Further, the sale proceeds can be repartiated to USA after paying the taxes, however, without complete details proper advise and guidance cannot be given.