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Indermohan Kapoor (Manager)     09 December 2013

Income tax to be paid on flat purchased by nre income

I am selling my seven years old flat which I bring up thro' NRE income.

value of flat is nearly 50 Lakhs, how mush I pay to income tax, or 

Please guide me to handle the income tax part..

Regards,

I.Kapoor.



Learning

 2 Replies

sreekanth (Assistant Manager- Taxation)     10 December 2013

You have to Pay Long term Capital Gains, under Income Tax Act

Refer the "Section Analysis" part of this page, Which explains in details how to Calculate , Long term Capital Gains

Link:https://www.exploreincometax.com/Indian-Income-tax-Act-1961/Section-48

R RAJAGOPALAN (ADVOCATE)     10 December 2013

YOUR QUERY:I am selling my seven years old flat which I bought thro' NRE income.

                        value of flat is nearly 50 Lakhs, how much I pay as income tax, or 

                       Please guide me to handle the income tax part..

REPLY: Are you still an NRI, a non-Resident?

AS YOU OWNED THE FLAT FOR MORE THAN 36 months,it is a Long Term Capital Asset. You have to pay tax on the Long Term Capital gains.

If you can prove that you had acquired/purchased it with convertible foreign exchange, as required in section 115C(b) of the Income tax Act 1961, you need pay tax at the rate of 10% only (without any Basic Exemption) as prescribed in Section 115E. Otherwise you will pay income tax at 20% as prescribed in section 112.

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