Nice topic.. still needs many aspects to cover. Sir.. I have 2 query for an old property. 1. For calculation of acquisition price, cost of construction will also be added to circle rate of the land ?? 2. If property is inherited by two people say a brother and a sister, then will both be liable for capital gain ? Thanks in advance. 🙏🏻🙏🏻
In the case of a Immovable property which is purchased before 1.4.2001 and being sold now it is told that aquisition price or govt guidance rate whichever is higher is to be taken.but in certain states like kerala state where the govt rate is avialable from 2010 onwards only.in that case the fair market value of the said Immovable party cerified by a registered valuer of income tax can be takes for capital gain calculation
Sir, I watched your channel and this video for the first time and I really liked the simplicity with which you have explained all the points. I am definitely going to watch the next two episodes as well. I have one simple query, regarding this topic that you presented in this video. As per your info. one has to pay Capital Gains tax in India, so in such a case do one needs to show this capital gains as part of global income in his/her current country of residence and then pay local taxes here as well.. ? What does the double taxation avoidance treaty that India has with many countries, states in such a case.. ? For example, I live in Sweden and I sell a house property in India, so how this impact my tax liability in India and Sweden... ? Pls. clarify.
Yes, you will have to pay taxes in India (income is sourced in India), declare this income in Sweden (country of residence) pay taxes and against such taxes claim foreign tax credit as per DTAA to negate double taxation… check video on ‘double taxation avoidance agreement’ in this channel
Sir Interest on borrowed capital can be claimed under sec 24 and also the interest paid can be added to cost of acquisition.This is upheld in Ramabramham case in Chennai.Many High courts have also given their judgement in support of allowing interest for cost of acquisition.This method is in force up to 31.03.23. From 01.04.23 sec 48 is modified slightly to exclude the part of interest claimed on yearly basis.That part which cannot be claimed to be taken for cost of acquisition.You may please refer point no 13 of page 41 of budget proposals by Finance Minister.Please review in the light of this fact.
Thank you for your views... I am aware of the Chennai ITAT decision along with other decisions of Delhi & Madras... However, there are contra decisions also from Bangalore ITAT following rationale set by Karnataka HC & SC which has categorically stated that double deduction cannot be claimed of same expenditure... Following this rationale, I am of the view that once the claim of interest on loan as deduction u/s 24, the same cannot be claimed as deduction in future as cost of acquisition... This rationale has now been brought in specifically under the provisions of section 48 by way of proviso w.e.f. 01st April 2023...
I had purchased a flat at Pune in 1997 for Rs. 1.70L and I have made iron gate and iron fencing and aluminium sliding doors for all rooms Whether these are considered as cost of improvement and I have no bill for that property tax also will be considered as cost of acquisition What is the property value in 2001 for which to be considered for indexing cost
Very nice and informative sessions. Could you please explain why a TDS of 1% of sale proceeds is to be paid by buyer in case the seller is a resident and around 20% plus to be paid by buyer in case the seller is an NRI?
@@NRIMoneyClinicFair enough, i understand the above answer. But how do i calculate what is the actual tax that i should pay (so that i could claim part or all of TDS paid)?
Is this TDS calculation adjusted to inflation? When we bought the property coffee was sold for 25 paise and a USDollar was Rs 7. Do you think this nominal calculation is fair?
How can I claim deduction for appreciation of dollar value for IT calculation? When I bought the property ithe dollar value was rs. 50. Now when I sell it the dollar value is 85/- resulting in no profit in terms of dollars
As NRI living in the USA I sold plot in India and incurred some charges for power of Attorney document in connection with executing sale in India on my behalf in my absence. I understood POA had to be registered and I had to send it by courier. Can I deduct these charges in computing capital gains tax? what documents I need to have? Any clarification would be appreciated.
Good presentation, as an NRE, property purchased 100 percent from NRE account only. I need to open and NRO account to sell . Is the sales fund repartiable in full
Yes, invariably RBI will not allow buyer to deposit funds directly to NRE or foreign bank account. One can try taking permission from RBI in this regard. Yes, the sale proceeds are repatriable.
It can be done... the issue is subjective & lot of fact findings needs to be done before answering as there is no straight forward answers.... Hence, it is advisable for you to take professional services...
There are video’s in this channel on transfer of funds from NRO to NRE, repatriation of funds outside of India under $ 1 million scheme etc., you can watch them and be guided
What about under construction apartment which is not yet registered in my name. I'm planning to sell my apartment which was booked in 2015 and got completed only now. I'm planning to sell it off before registering. What would be the capital gains tax for me.
One property is being sold by six brothers(equally ratio) to husband(60%share) and wife(40%) as joint buyers.consideration amount is 90 lacs. each brother will receive 15.0 lacs out of the above. how much TDS to be deducted and how it has to be paid. whether one person can pay on behalf of all or separate forms 26 QB to be filled by individually? 2buyer×6seller=total 12 form 26qb file karna hoga. But ratio (60% and 40%) ratio of share husband ka exceed toh 1buyer×6seller= total 6 form26qb file karna hoga? And sirji, 2nd buyer(wife) ko 40,00,000 which is below threshold limit, so wife not required to file form 26qb? And husband exceed the threshold limit. Tds deduction at source while making payment to seller! And sirji form 26qb mai husband more then buyer mai yes click karega. And total 6 form bharna hogana ? And sirji, wife ko form 26qb file nahi karna hoga?
Respected Sir, I am an NRI from Canada, I have a commercial property in an industrial complex. I have rented it out on lease agreement for the last 8 years. Every 3 years the owner keeps changing the names of the firm but the owner is still the same. Sir will the 12 year rule of same tenant occupying the place adversely affect my ownership. Thanking you kindly
Namasthe, What is the best option for NRI to sell a immovable property in INDIA? (1). Just sell the property by myself, (2). or give the property to my NRI children through the "WILL". Which is the best option to save the taxes?
Sir mere chacha ko ek builder ne phasaya he. Pehle joint venture Kiya aur badme cheat karke sale deed karke liya. Aur Feb 2021 me sale deed karke li aur post dated chq Diya 2024 ka. Amt 1 crore he to ab capital gain se kaise bache builder to payment 2024 me hi dega. Aur payment bhi nhi hath me bond aur land lene ko . Ya phir capital gain account scheme me dalne ko
Its complicated.. if you feel cheated, then you must pursue legal action... if you accept then the Income Tax law will prevail & you will be liable for capital gains in FY 2020-21...
Please correct at 15.45 10% less from Govt Value and not consideration. So in your example (1) if Govt Value is 11 lacs then consideration can be upto 9.90 lacs (10% less from Govt Value) and (2) if Govt Value is 11.01 lacs then consideration can be upto 9.909 lacs (10% less from Govt Value) Hope you realise your mistake and correct it.
Also ur advise at 32.40 is absolutely wrong. If the wife is joint holder just for name sake or convenience that means the true owner of the property is husband (which he has funded and shown in his books and claimed all the benefits of exemptions and rebates every year also shown rental income in his computation) and the capital gains tobe calculated only in husband's case. Please comment/reply
Sincerely I do not agree with your contention. It is if the guidance value exceeds 110% of sale consideration, then guidance value should be adopted as sale consideration. If sale value is 10 lakhs & guidance value is 11 lakhs then 10 lakhs would be sale consideration & if guidance value is 11 lakhs 1 rupee, then 11 lakhs 1 rupee would be sale consideration. You can refer 3rd proviso of section 50C... it is provided here below for your ready reference "Provided also that where the value adopted or assessed or assessable by the stamp valuation authority does not exceed one hundred and ten per cent of the consideration received or accruing as a result of the transfer, the consideration so received or accruing as a result of the transfer shall, for the purposes of section 48, be deemed to be the full value of the consideration. "
@@narendradayama7215 If you verify from the provisions of law, you are absolutely right, I could not more agree with you... But from the point of view of practicality, the approach which you have mentioned creates more litigation and the approach which I stated as "advisable" creates less litigation, especially when the assessee pays taxes & does not claim any deductions from capital gain individually... 🙂
Sriram Rao needs to improve his English and public speaking skills. His sentences are overly complicated and have many unnecessary, repeating words. He also talks like a text book, instead of using examples. Sad to see him struggle like this. He should learn from the host.
CA SRIRamrao doesn't have a fair sense of knowledge to explain the things properly, I suggest instead of such bad speakers, Chandrakanth himself can explain meticulously
Please keep your comments respectable. Mr Sriram is an internationally acclaimed chartered accountant with an excellent ability to simplify and effectively reach audience . We respectfully disagree with you .
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Clarity (both Question &Answer) is well above 100% and UNAMBIGUOUS
highly appreciated
Thanks to both of you Sirs
Wonderful presentation. Relevent questions put forth by Dr.Chandrakanth , his stylish language ,way of approaching the subject issue are superb .
Wonderful explanation regarding capital gains. Very easy to understand. Tks for sharing.
Excellent presentation and very informative. Thanks. Waiting for part 2.
Absolutely GEM..wonderful clarity
Superb noted many advantages and benefits superb sir very crystal clear Sir
Excellent for NRIs I shared with many.
Excellent info. Thanks for the clarifications on several topics
Nice topic.. still needs many aspects to cover.
Sir.. I have 2 query for an old property.
1. For calculation of acquisition price, cost of construction will also be added to circle rate of the land ??
2. If property is inherited by two people say a brother and a sister, then will both be liable for capital gain ?
Thanks in advance. 🙏🏻🙏🏻
Please watch the video for answers . Also watch part 2nd and part 3 as they get released
Thank you Sir, for your quick response.
Does a US Citizen NRI with a Certification of US Tax Residency (IRS Form 6166) have to pay Capital Gains Taxes in India ?
Thanks for so much useful information
In the case of a Immovable property which is purchased before 1.4.2001 and being sold now it is told that aquisition price or govt guidance rate whichever is higher is to be taken.but in certain states like kerala state where the govt rate is avialable from 2010 onwards only.in that case the fair market value of the said Immovable party cerified by a registered valuer of income tax can be takes for capital gain calculation
What a Law! As an Non Resident In India why should I have a bank a/c in India? To have more headaches!
Thank you so much for your valuable advice
Good channel 👌. Thanks 🙏
Sir, I watched your channel and this video for the first time and I really liked the simplicity with which you have explained all the points. I am definitely going to watch the next two episodes as well. I have one simple query, regarding this topic that you presented in this video. As per your info. one has to pay Capital Gains tax in India, so in such a case do one needs to show this capital gains as part of global income in his/her current country of residence and then pay local taxes here as well.. ? What does the double taxation avoidance treaty that India has with many countries, states in such a case.. ? For example, I live in Sweden and I sell a house property in India, so how this impact my tax liability in India and Sweden... ? Pls. clarify.
Yes, you will have to pay taxes in India (income is sourced in India), declare this income in Sweden (country of residence) pay taxes and against such taxes claim foreign tax credit as per DTAA to negate double taxation… check video on ‘double taxation avoidance agreement’ in this channel
Excellent topic, covered a lot, one request can you please let us know where to find the latest indexed cost of acquisition chart.
you can find out in income tax official website...
Thanks for wonderfull information
Agri land in a place which was in a rural area but since has been included in a recently created municipality what will happen?
Sir
Interest on borrowed capital can be claimed under sec 24 and also the interest paid can be added to cost of acquisition.This is upheld in Ramabramham case in Chennai.Many High courts have also given their judgement in support of allowing interest for cost of acquisition.This method is in force up to 31.03.23.
From 01.04.23 sec 48 is modified slightly to exclude the part of interest claimed on yearly basis.That part which cannot be claimed to be taken for cost of acquisition.You may please refer point no 13 of page 41 of budget proposals by Finance Minister.Please review in the light of this fact.
Thank you for your views... I am aware of the Chennai ITAT decision along with other decisions of Delhi & Madras... However, there are contra decisions also from Bangalore ITAT following rationale set by Karnataka HC & SC which has categorically stated that double deduction cannot be claimed of same expenditure... Following this rationale, I am of the view that once the claim of interest on loan as deduction u/s 24, the same cannot be claimed as deduction in future as cost of acquisition... This rationale has now been brought in specifically under the provisions of section 48 by way of proviso w.e.f. 01st April 2023...
Well explained and educated
All payments has done in 2001-2002 but sale deed done in 2002-2003 which index has to taken for calculation of capital gain
What about TDS on sale proceeds by NRI in immovable property? Pl cover in your 2nd part.
Fantastic video, thanks for sharing!
I had purchased a flat at Pune in 1997 for Rs. 1.70L and I have made iron gate and iron fencing and aluminium sliding doors for all rooms
Whether these are considered as cost of improvement and I have no bill for that property tax also will be considered as cost of acquisition
What is the property value in 2001 for which to be considered for indexing cost
Very nice and informative sessions. Could you please explain why a TDS of 1% of sale proceeds is to be paid by buyer in case the seller is a resident and around 20% plus to be paid by buyer in case the seller is an NRI?
Because NRIs may not file tax returns and never return to India !!!
@@NRIMoneyClinicFair enough, i understand the above answer.
But how do i calculate what is the actual tax that i should pay (so that i could claim part or all of TDS paid)?
Is this TDS calculation adjusted to inflation? When we bought the property coffee was sold for 25 paise and a USDollar was Rs 7. Do you think this nominal calculation is fair?
How can I claim deduction for appreciation of dollar value for IT calculation? When I bought the property ithe dollar value was rs. 50. Now when I sell it the dollar value is 85/- resulting in no profit in terms of dollars
I paid land tax and Amc charges to my plot for 15 years . Does same can be added to purchase cost .
As NRI living in the USA I sold plot in India and incurred some charges for power of Attorney document in connection with executing sale in India on my behalf in my absence. I understood POA had to be registered and I had to send it by courier. Can I deduct these charges in computing capital gains tax? what documents I need to have? Any clarification would be appreciated.
Good presentation, as an NRE, property purchased 100 percent from NRE account only. I need to open and NRO account to sell
. Is the sales fund repartiable in full
Yes, invariably RBI will not allow buyer to deposit funds directly to NRE or foreign bank account. One can try taking permission from RBI in this regard. Yes, the sale proceeds are repatriable.
After sale of property you have paid tax being a NRI , do you pay tax again in residing country eg UK
Very helpful
Can I invest capital gains from property sale in shares thank you
Sir, Thankyou for the videos. Bought a property using funds from US in parent name. How to sell property and bring money to US?
It can be done... the issue is subjective & lot of fact findings needs to be done before answering as there is no straight forward answers.... Hence, it is advisable for you to take professional services...
@@sriramrao2514 your contact no . Do you provide?
Is it is possible to get the contact information for CA Sriram Rao
What are the things to be considered when a NRI wants to sell an immovable property to another NRI. Thanks Dr Bhat
You can watch video ‘NRI’s- 13 points to take care when acquire property in India
Sir please could you explain term , Uk Information tax exchange agreement and its application fo4 an NRI
Thank you..can you advice what should NRI do with existing saving accounts in India?
Check out video in this channel - guide for new NRI’s - check list of do’s and don’t….
Are traveling expenses deductible for capital gains
Why cant the cost of purchase be the guidance value ?
Are traveling cost deductible from capital gains
I bought a property and transferred it before I registered it in my name. How do I calculate the holding period to calculate the capital gains tax?
It depends on facts and circumstances... one need to go through the documents of obtaining possession/rights in the property and then decide...
Just checked the RBI website and OCI is exempted and can buy the property in India no matter which country.
Please provide the link . May be some wrong interpretation
what are the restrictions on transfering rental income or Sale amount from property sale from NRO account to outside India?
There are video’s in this channel on transfer of funds from NRO to NRE, repatriation of funds outside of India under $ 1 million scheme etc., you can watch them and be guided
if selling a land, can the maintenance charges and property tax paid also can be considered as expenses to be deducted for CGT calculations ?
No, it cannot be... these costs are similar to interest on loan, which I have explained in video and needs to be claimed year on year...
What about under construction apartment which is not yet registered in my name. I'm planning to sell my apartment which was booked in 2015 and got completed only now. I'm planning to sell it off before registering. What would be the capital gains tax for me.
Under these circumstances, invariably you will be selling the right to buy… so it will amount to capital gains as extinguishment of rights…
What if NRI can’t find buyer ?.
One property is being sold by six brothers(equally ratio) to husband(60%share) and wife(40%) as joint buyers.consideration amount is 90 lacs. each brother will receive 15.0 lacs out of the above. how much TDS to be deducted and how it has to be paid. whether one person can pay on behalf of all or separate forms 26 QB to be filled by individually?
2buyer×6seller=total 12 form 26qb file karna hoga.
But ratio (60% and 40%) ratio of share husband ka exceed toh 1buyer×6seller= total 6 form26qb file karna hoga?
And sirji, 2nd buyer(wife) ko 40,00,000 which is below threshold limit, so wife not required to file form 26qb?
And husband exceed the threshold limit. Tds deduction at source while making payment to seller!
And sirji form 26qb mai husband more then buyer mai yes click karega. And total 6 form bharna hogana ?
And sirji, wife ko form 26qb file nahi karna hoga?
Respected Sir, I am an NRI from Canada, I have a commercial property in an industrial complex. I have rented it out on lease agreement for the last 8 years. Every 3 years the owner keeps changing the names of the firm but the owner is still the same. Sir will the 12 year rule of same tenant occupying the place adversely affect my ownership.
Thanking you kindly
I don't think it is going to impact you.. But it is advisable to amend the lease agreement from time to time...
Namasthe, What is the best option for NRI to sell a immovable property in INDIA? (1). Just sell the property by myself, (2). or give the property to my NRI children through the "WILL". Which is the best option to save the taxes?
Even if you give the property to your NRI children, it will attract capital gain when your children are selling it
When u give your property on a will there is no capital gain
Originally Indian English accent 💐🙏
Can we get exemption for having two flats out of capital Sec 54 and 54 F differs.kindly.clarify.Thank u
watch part 2 of this series... your query is answered in that...
Sir mere chacha ko ek builder ne phasaya he. Pehle joint venture Kiya aur badme cheat karke sale deed karke liya. Aur Feb 2021 me sale deed karke li aur post dated chq Diya 2024 ka. Amt 1 crore he to ab capital gain se kaise bache builder to payment 2024 me hi dega. Aur payment bhi nhi hath me bond aur land lene ko . Ya phir capital gain account scheme me dalne ko
Its complicated.. if you feel cheated, then you must pursue legal action... if you accept then the Income Tax law will prevail & you will be liable for capital gains in FY 2020-21...
🙏🌹🙏
Please correct at 15.45
10% less from Govt Value and not consideration.
So in your example
(1) if Govt Value is 11 lacs then consideration can be upto 9.90 lacs (10% less from Govt Value) and
(2) if Govt Value is 11.01 lacs then consideration can be upto 9.909 lacs (10% less from Govt Value)
Hope you realise your mistake and correct it.
Being a professional person you should wholeheartedly accept your mistake and apologies to the viewer and subscribers on this channel itself.
Also ur advise at 32.40 is absolutely wrong.
If the wife is joint holder just for name sake or convenience that means the true owner of the property is husband (which he has funded and shown in his books and claimed all the benefits of exemptions and rebates every year also shown rental income in his computation) and the capital gains tobe calculated only in husband's case.
Please comment/reply
Sincerely I do not agree with your contention. It is if the guidance value exceeds 110% of sale consideration, then guidance value should be adopted as sale consideration. If sale value is 10 lakhs & guidance value is 11 lakhs then 10 lakhs would be sale consideration & if guidance value is 11 lakhs 1 rupee, then 11 lakhs 1 rupee would be sale consideration. You can refer 3rd proviso of section 50C... it is provided here below for your ready reference
"Provided also that where the value adopted or assessed or assessable by the stamp valuation authority does not exceed one hundred and ten per cent of the consideration received or accruing as a result of the transfer, the consideration so received or accruing as a result of the transfer shall, for the purposes of section 48, be deemed to be the full value of the consideration. "
@@narendradayama7215 If there is a mistake, I would definitely correct myself... 🙂
@@narendradayama7215 If you verify from the provisions of law, you are absolutely right, I could not more agree with you... But from the point of view of practicality, the approach which you have mentioned creates more litigation and the approach which I stated as "advisable" creates less litigation, especially when the assessee pays taxes & does not claim any deductions from capital gain individually... 🙂
Sriram Rao needs to improve his English and public speaking skills. His sentences are overly complicated and have many unnecessary, repeating words. He also talks like a text book, instead of using examples. Sad to see him struggle like this. He should learn from the host.
He will personally train you 😮
CA SRIRamrao doesn't have a fair sense of knowledge to explain the things properly, I suggest instead of such bad speakers, Chandrakanth himself can explain meticulously
Please keep your comments respectable. Mr Sriram is an internationally acclaimed chartered accountant with an excellent ability to simplify and effectively reach audience . We respectfully disagree with you .