I don’t understand why we need to pay this much huge amount of money to the government of our hard earned money, what they are giving in return??!! Pollution or damaged roads or any health care or free education, what we are getting ?? In fact nothing we benefits even after paying too much taxes!!!!
Since this is a NRI related discussion let me as a US based NRI, offer some comments/ information that I gathered and please feel free to correct and update if wrong. In a nut shell, I will say that all these scare about changes to Indexation has minimal to no Impact on NRI's taxes. 1. As a NRI, by LAW you have to report incomes of all kinds outside the US, and no escaping. Dont try to hide in your US filing, as consequences from IRS can be severe. IRS of US can get your complete Financial transactions from India and it is a part of Dual tax treaty agreement. 2. Also to note, if you have any accounts or financial interest outside the US that exceeds $10K you have to file a FBAR / FATCA. 3. Indexation allowed or not, it DOES NOT impact your CG calculations for your US tax Filing. IRS of US, uses your original acquisition cost plus improvements and the selling price to calculate the CG. Therefore Indexations means NOTHING to them. Therefore all this arguments on Indexation and its Pros and Cons are a Mute point for US based NRIs. 4. The Indexation changes only impacts the TDS held and the Taxes payable to Indian ITO. 5. Another point to note, when you file the IRS taxes in US, you can claim as a CREDIT the foreign taxes paid. Let us say the India taxed you $20K as cap gain taxes, you can get a credit back from IRS because of the Dual taxation agreement. There are some limits to how much credit you can get based on your US earnings. 6. US IRS rules DOES NOT ALLOW re-investment of CG for properties held outside India as a means to Defer the Cap gain. It may be OK from Indian Tax filing but not allowed by IRS. As an example say you had a CG of 1 cr and invested that amount in another property, you may get away with Tax payable in India. As far as IRS is concerned that gain is a GAIN and you pay taxes on it. I am pretty sure on this rule and some one please feel free to confirm or correct. 7. From an NRI point of view it is not worth throwing 50L in Rural Elect bonds @ 5%. It only saves Indian taxes but does not help US taxes as your CG is sale -cost. Please feel free to comment / correct. As NRIs we all learn something new every day. After dealing with all the India income reporting and investments, the paperwork India asks for little changes, in my opinion its a head ache having any investments in India as the tax filings with IRS only gets more complicated. If its hard enough for you, will your children living here be able to handle it? Thats a different discussion.
@@devshah4030 -NRI technically falls under 2 categories, First being a resident of Another country and still holding Indian citizenship. 2nd category being you are a citizen of a foreign country and are an OCI. I am sure being a resident / citizen of a foreign country you will be a tax filing entity of that country, and that country's rules on inheritance will govern the taxation. As far as India's tax rules, I am not familiar with inheritance and taxation rules and you will have to speak to a CA who deals with NRIs taxes and they should be better equipped to answer.
@@devshah4030 yes, when you inherited the property, get FMV (Fair Market Value) of that property in that year which is calculated by approved property valuer. That is your deemed acquisition cost. So CG =sale proceeds +expenses related to sale(like marketing, broker fees on his invoice,lawyer's fees,legal charges etc) - deemed acquisition cost+ expenses related to such acquisition
Sir previously there was 20% TDS applicable on NRI property, which buyer had to deduct the from the total consideration & deposit with income tax department then handover the said challan to the seller, which was used to attach while filling the return of capital gain tax. Now my question is that, 1) Is there any change in TDS rate/percentage on Sale of NRI property? 2) Is there any change in filing the Capital Gain Tax returns of NRI Property? Thank you sir.
FM should know that if I keep that 10 lakhs in bank then after adding interest this ten lakhs is certainly going to be 20 lakhs after 10-12 years. So how FM can finish indexation. This means I am not to be paid any interest. Similarly if I invest in Mutual Funds then I am getting the benefit of indexation because of increased price of MF.
BJP and Modi are looking means and opportunities where they can extract as much money as possible to fill their accounts........this Government is in the pockets of big shots like Ambani and Adani ... u can say modi and FM is a PVT slut to this big shots
🙏Thank You - Professional talk , quite benefits for us as an NRI. Please made more videos for NRI returning home country.What are the Tax obligations.Thank You.
Humility is an ability to value the presence of each human being on this earth. Our FM has it from her genes I think for dealing with taxes of all alike without biases.
You end up with lock in of 5 years and only around just 5% interest with these bond. So I do not think your money even meeting inflation rate yearly. It is very bad form of investment to save capital gain. Also as previously captial gain was lesser after indexation, now you have to invest a big chunk of you sale amount (as your total capital gain just got huge) in these saving options. Really a bad decision by government.
if you invest the 50lakhs in bonds ( i am assuminy that you cannot invest more than 50 lakhs) and you live in a country that has a DTAA with India, although you do not pay any tax in India but do you still have to pay tax to the country you are registers in for tax purposes.
Par Tribune news today, now govt allows option either LCTG 12.5% without indexation or 20% with indexation. There is another video by another CA who mentions peoperties purchased before April 2001 can be indexed and 12.5%. Very confusing, please check budget documents and clarify. Also if TDS for NRI, now reduced from 20% to 12.5% or not
Thank you for commenting. This video is focused on NRIs and their taxation. While the rule also applies to resident Indians, our primary audience is NRIs. In this video CA Arun Tiwari forgot to mention that. We also make videos for Indian residents.
I am NRI like to sell properties of 1982 now. It will be to get it's valuation to reduce the tax or pay 12.5 % + 4 % TDS. PLZ make video when notification on valuation come from govt.
Hello, I am writing this comment from USA. Your video is invaluable for NRIs. There many Indians in USA who are gradually becoming Citizens and thinking seriously to sell their Own property ( not inherited). Your tips will be very helpful to them. Suggest, keep giving the advice to NRIs on property as it is not much precisely discussed and is confusing too. Good luck..
@shekharraje5188 Thank you so much for your kind words! I'm glad you found the video helpful. I'll continue sharing insights on property matters for NRIs to help clear up the confusion. Stay tuned for more! If you have any queries feel free to contact our NRI Desk at cs@aktassociates.com or 8080088288
What about people who are OCI that means who given up indian passport/ citizenship and become citizens of other countries but have properties in India?
Yes, selling a property for more than you bought it can trigger capital gains tax on the profit. For more details Please contact our NRI Desk at cs@aktassociates.com or 8080088288.
Indian resident have to pay 1% tds NRI have to pay 20%. NRI can apply for Lower TDS certificate to avoid 20% TDS. For more details Please contact our NRI Desk at cs@aktassociates.com or 8080088288.
Capital gain bond means its a Govt. bond where you can invest to save your capital gain tax. For more details Please contact our NRI Desk at cs@aktassociates.com or 8080088288.
If you buy a house you will spend for repairs,maintenance.l,property tax paid. Why govt. Had not thought of that ? THESE cost should be added instead of indexation.
Yes you can add the updates and Improvements to the cost basis for CG calculations.Your cost basis for CG calculations will be Original acquisition cost + Improvements and updates.
I need your comments on my case. I have bought an apartment in December 2023 and I am planning to sell my house in September 2024. What is my position on CG.
Yes you have to pay Short term capital gain tax because you are selling the property less then 2 years. For more details Please contact our NRI Desk at cs@aktassociates.com or 8080088288.
In case of properties purchased before 2001, the fair market valuation (not exceeding the stamp duty value) can be used as a base to determine the indexed price. The indexed price will then be reduced from the sale price for calculating LTCG that will be taxed at 20 per cent. For more information, you can contact our NRI Desk at 8080088288 or email us at cs@aktassociates.com
You did not tell the crowd that if you bought a property recently then your gain is also less compared to long term. So you are lucky to get less capital gains does not arise. People who bought long time ago gained heavily n they can afford to pay the 12.5 gains with pleasure.
Yes, the new 12.5% LTCG tax applies to all property sales, including those bought or inherited before 2001 and you can apply for lower TDS also. For more information contact our NRI Desk at 8080088288 or email us at cs@aktassociates.com
I'm an OCI with 1 property overseas and 1 property in India which i will sell and invest the proceeds into another property in India - will the buyer deduct tds & how do i claim it back as i will be reinvesting in buying another property and can i add my so onto the new property that i buy all the funds will be mine.
When filing your income tax return in India, you can show details of new property investments and claim the TDS amount. For more information contact our NRI Desk at at 8080088288 or email us at cs@aktassociates.com
If your reinvesting sale amounts to new property, you can claim a refund whatever TDS you paid when you sold the property. For more clarification Please contact our NRI Desk at cs@aktassociates.com or 8080088288
What about NRI who sold inherited property in April 24 before the budget announcement . Will the new rule will be applicable or we are saved with the old rules
@@AKTAssociatesOfficialare you 100% sure . I am also a chartered accountant am my understanding is from my colleagues in Europe that that any transactions after the budget date the new rules will be applicable . But if you say than I think you are professional and you are correct as you are confident in your answer
For an NRI, capital gains on ancestral agricultural property are generally not subject to tax if the property is in a rural area, but they may be taxed if it is in an urban area.
However as for as my reading goes govt has brought back indexation rule for properties purchased before 23/ 07/24. For such properties seller has an option to use indexation to arrive at capital gains and the gains so arrived at would be taxed at 20%, whereas if no indexation is done then tax at revised rate of 12.5%. Am I correct ? Or this amendment applies to only resident Indians and not to NRIs ? Pl respond
Yes, the interest paid on a loan for the property can be deducted from the capital gains when selling, but only if the loan was taken for the acquisition, construction, or improvement of that property.
Hello Sir, I have a question. Currently, I am an NRI and am considering purchasing property in my name. After a few years, I plan to move back to India permanently, and I may sell the property in the future. In this scenario, would I still be considered an NRI at the time of sale, and would I be required to pay TDS on the property sale as an NRI? Thank you for your assistance.
once you return to India first 3 year your status will be NRI only after 3 year your status became a Indian resident tax will applicable as per your residential status. For more details Please contact our NRI Desk at cs@aktassociates.com or 8080088288.
I (NRI) sold my property in Dec 21 and reinvested in a New property in Feb 22 to get back the CG tax. Till when do I have to wait to sell the New property so that the tax refunded earlier is not taken back by the government?
Indian govt is very clever. Those who paid less white, and more black money to buy property ( more black to white ratio)will finally end up tax on the black element when they ho to sale the property. The trend is more white money and less black money ratio! Correct me if I am wrong in this thinking?
As NRI I bought a flat 4 years ago. As I am planning to sell the flat, do you think I should wait for the govt evaluation report before I sell. Please advise.
Govt. valuation report you take it from Sub Registrar office now also. For more details Please contact our NRI Desk at cs@aktassociates.com or 8080088288.
As an NRI if I sell for 1 cr I end up having capital gain of 90,00,000 means paying 11,25,000 TDS. In turn, what service I would get from India ? Or to my property buyer( at least he could enjoy benefits from my TDS !) There is trash, filth and poor road in and around my area. The government or municipal authority denied to collect garden waste and tree Cutting/pruning for which I paid about 60,000. Tax like EU but act like Somalia/Zaire/Chad. Compelling PIO to hate his own country 😡
These NRIs had taken every possible benifits from the country and migrated outside but they are crying when time for payback. They are very loyal to the country where they are staying by paying happily taxes as high as 40%. They will remember India only in crisis.
I have a settlement deed in my favour executed by my father. Can I in turn execute it in favour of my wife by means of a settlement deed and if my wife wants to sell after a year Of my execution which date i should take for working out the capital gain
Hello, the new capital gains taxation rules apply even for residential vacant plots also, or only for houses? I have a plot just on my name. Can I add my wife now as the jount owner? If so, what is the procedure? Thanks.... JR
Yes, the new capital gains tax rules apply to residential vacant plots as well. You can add your wife as a joint owner, but we recommend consulting CA Arun Tiwari for specific advice on the procedure and potential tax implications. For more information, you can contact our NRI Desk at 8080088288 or email us at cs@aktassociates.com
Thankyou for the video and valuable information. We got a flat in 2012, so if we sell do we pay 12.5% tax is that right? I was hearing for NRI's Tax is 42% and hence they need to give the property as gift deed to the sister or brother who does have any property in there name and can pay 20% less tax. Also does the same 12.5% rule apply for the NRI who wants to buy flat even thought they had a flat in another place.
Since the indexation has been restored (20% with indexation or 12.5% without indexation whichever is beneficial, this video is no longer valid/ helpful.
Cause parties like AAP,,KHANRES,SP TMC ETC CONTRIBUTE HANDSOMELY TO CREATE LIKE SOMALIYA IN BHARAT WITH THERE ANIT INDIAN ACTIVITIES, CORRUPTION they are stoiges of CIA /SOROS thts the reality current govt trying ti save the country n they are doing exceptionally good job
Rome wasn't built in a day , so in order to get the services you allude to 1) wait till all the infra has been upgraded ( country wide ) , 2) start paying at every nook and cornor ...and I mean for even parking your car on the front street of your house... and i haven't even star5ed paying the exorbitant train/air / metro fares !!
They themselves are eager to making it Somalia .. although right now we r at much better place .. tax is not like USA canada as we get nice interest even in saving account which they don’t have in canada
Yes, NRIs cannot buy agricultural land in India. For more information feel free to contact our NRI Desk at 8080088288 or email us at cs@aktassociates.com
Dear AKT, I don’t agree with your analysis. Tax is a function of three variables, first is cost of acquisition, second is the rate of appreciation of the property, third is indexation, fourth is the tax rate itself. In your video, you are saying that the assets acquired a long time ago will suffer from removal of indexation. But this is not true, as the answer depends on the rate of appreciation vs the indexations ( inflation ) rate. Finally, we need to factor in the reduction from 20% to 12.5%. So if you a acquired in 2001 and sold in say 2024 the indexation is about 363, roughly 5% per annum, but if you rate of appreciation is say 17%, you would be better of in the new regime Will not lose as you say in your video 😊
Long Term Capital Gains (LTCG) 12.5% and Short Term Capital Gains (STCG) 20% For more information contact our NRI Desk at 8080088288 or email us at cs@aktassociates.com
Hello sir, I am confused about indexation calculation of older properties in the new rules, for example I bought a residential plot in 1997, does it mean that I can use a fair market value as of year 2000, then use this value as my purchase value? Where is indexation coming into picture in the new rules for older oroperties before year 2001?
Sir I hold POA for one house whose owner is my relative who lives abroad. If i sell that house, who is responsible for paying capital gains. I assume it is original owner/NRI?
Yes, the capital gains tax liability would fall on the original owner/NRI. For more information feel free to contact our NRI Desk at cs@aktassociates.com or 8080088288
Can one add cost of interior works ( wardrobes n kitchen cabinets, etc) to the buy value to reduce the capital gain. If i sell this flat, then what proof is required required whil filing the ITR to show this additional cost.
Yes, you can add the cost of interior work, but you will need to provide proof of payment and a receipt. For more information contact our NRI Desk at at 8080088288 or email us at cs@aktassociates.com
I am an NRI who recently sold my inherited property in June 2024 before the latest budget. To offset capital gain tax, I have invested in govt. bonds to the tune of Rs. 50 lakes. Will I be subjected to capital gains of 12.5% or based on the indexed value of 20%. Thank you.
This budget is not for middle-class people. In simple, government want 60 to 80% from our income whether by direct tax or indirect Taxes or both. Remember, only salaried people are paying huge taxes in india 🇮🇳..😅
BJP government always worked for Ambani and Adani and not for comman man , all the People who Voted for BJP now know what a Monster they have brought to power
Many budgets are coming after the new budget written by Adhani and presented by FM in Parliament. The budget was prepared, thinkng that BJP will get 400+ seats in Parliament. Now they have to make democratic budget. Thanks to opposition for bringing democracy back in to Parliament.
@@manjusyogadance9570and There was an exemption from capital gain tax ,if we invest it in NHA or REC bonds for three years , then they extended it to five years or we have to invest it in real estate with in next three years. I wonder Adhani was aware of this when he made the budget. How ever there are many mini budgets coming after this and hope there will be a clear idea about these sooner or later before BJP lose the power.
Very simple. If the property was for 10 lak now 1 crore and 90 lak is CG then at 12.5 percent then it will be 11.25 lak. With indexation 70 lak cg means 20 percent is 14 percent.
To open an NRI / NRE bank account, you need (1) your ID passport and ICO both documents identify your ID and residence, but Banks also demand TIN (Tax identification No). The Indian Banks can share your information with the income tax department of one's country of residence. Every individual should declare their income from all sources to the Income Tax Department. Still, when that information comes from 3rd party, then an individual can not defend or deny that information. The Indian Rupee is always on the decline and losing value. Think carefully before you open an NRI account. You will lose the value of your deposit and you can get problems problems with your country's Income Tax department.
You have to pay more taxes. In India people living standards are not improving but government is increasing taxes day by day. Modi has destroyed whole country except his friends Adani and Ambani. Rising inflation, unemployment, standards of education and Healthcare systems are the key issues Indian must address regardless which political party or ideology you support.
Try to visit India in at least 1-2 years bro, India is not same as 12 years back, huge infrastructure development is in progress, Freeways are on par with USA, we need more people like Adhani to develop ports and improve logistics infrastructure to compete with China, India digitization progress shocked the world, even beggars are using paytm,UPI payment system… 🤔
Do not speak Clown RG language. Who is getting contract as there is a system for awarding contracts. If anything is there then all these parties like Soros n china Paid parties wud have gone to courts . Since nothing is there n they themselves are giving contracts in their state govt to Adani . U can check. So be out of Modi phobia
Dear sir, besides giving information through video, how your association helps to NRI in property matter. Please share your email for convenience of interested NRI.
AKT Associates has been dealing with NRI taxation for the last 9 years. Our main service is providing NRI Lower TDS Certificates, and we also offer NRI legal services. Through our TH-cam channel, we create videos to raise awareness among NRIs and help them comply with Indian tax laws. To know more you can check our website aktassociates.com
I don’t understand why we need to pay this much huge amount of money to the government of our hard earned money, what they are giving in return??!! Pollution or damaged roads or any health care or free education, what we are getting ?? In fact nothing we benefits even after paying too much taxes!!!!
Since this is a NRI related discussion let me as a US based NRI, offer some comments/ information that I gathered and please feel free to correct and update if wrong. In a nut shell, I will say that all these scare about changes to Indexation has minimal to no Impact on NRI's taxes.
1. As a NRI, by LAW you have to report incomes of all kinds outside the US, and no escaping. Dont try to hide in your US filing, as consequences from IRS can be severe. IRS of US can get your complete Financial transactions from India and it is a part of Dual tax treaty agreement. 2. Also to note, if you have any accounts or financial interest outside the US that exceeds $10K you have to file a FBAR / FATCA.
3. Indexation allowed or not, it DOES NOT impact your CG calculations for your US tax Filing. IRS of US, uses your original acquisition cost plus improvements and the selling price to calculate the CG. Therefore Indexations means NOTHING to them. Therefore all this arguments on Indexation and its Pros and Cons are a Mute point for US based NRIs.
4. The Indexation changes only impacts the TDS held and the Taxes payable to Indian ITO.
5. Another point to note, when you file the IRS taxes in US, you can claim as a CREDIT the foreign taxes paid. Let us say the India taxed you $20K as cap gain taxes, you can get a credit back from IRS because of the Dual taxation agreement. There are some limits to how much credit you can get based on your US earnings.
6. US IRS rules DOES NOT ALLOW re-investment of CG for properties held outside India as a means to Defer the Cap gain. It may be OK from Indian Tax filing but not allowed by IRS. As an example say you had a CG of 1 cr and invested that amount in another property, you may get away with Tax payable in India. As far as IRS is concerned that gain is a GAIN and you pay taxes on it. I am pretty sure on this rule and some one please feel free to confirm or correct.
7. From an NRI point of view it is not worth throwing 50L in Rural Elect bonds @ 5%. It only saves Indian taxes but does not help US taxes as your CG is sale -cost.
Please feel free to comment / correct. As NRIs we all learn something new every day. After dealing with all the India income reporting and investments, the paperwork India asks for little changes, in my opinion its a head ache having any investments in India as the tax filings with IRS only gets more complicated. If its hard enough for you, will your children living here be able to handle it? Thats a different discussion.
very interesting points. I am NRI (not in US) though my question is, does CG also applies to inherited property?
@@devshah4030 -NRI technically falls under 2 categories, First being a resident of Another country and still holding Indian citizenship. 2nd category being you are a citizen of a foreign country and are an OCI. I am sure being a resident / citizen of a foreign country you will be a tax filing entity of that country, and that country's rules on inheritance will govern the taxation. As far as India's tax rules, I am not familiar with inheritance and taxation rules and you will have to speak to a CA who deals with NRIs taxes and they should be better equipped to answer.
For more details Please contact our NRI Desk at cs@aktassociates.com or 8080088288.
@@cookmaster3626 thanks.. will consult a CA in India. BTW, I hold OCI
@@devshah4030 yes, when you inherited the property, get FMV (Fair Market Value) of that property in that year which is calculated by approved property valuer. That is your deemed acquisition cost. So CG =sale proceeds +expenses related to sale(like marketing, broker fees on his invoice,lawyer's fees,legal charges etc) - deemed acquisition cost+ expenses related to such acquisition
Sir previously there was 20% TDS applicable on NRI property, which buyer had to deduct the from the total consideration & deposit with income tax department then handover the said challan to the seller, which was used to attach while filling the return of capital gain tax.
Now my question is that, 1) Is there any change in TDS rate/percentage on Sale of NRI property?
2) Is there any change in filing the Capital Gain Tax returns of NRI Property?
Thank you sir.
FM should know that if I keep that 10 lakhs in bank then after adding interest this ten lakhs is certainly going to be 20 lakhs after 10-12 years. So how FM can finish indexation. This means I am not to be paid any interest. Similarly if I invest in Mutual Funds then I am getting the benefit of indexation because of increased price of MF.
BJP and Modi are looking means and opportunities where they can extract as much money as possible to fill their accounts........this Government is in the pockets of big shots like Ambani and Adani ... u can say modi and FM is a PVT slut to this big shots
🙏Thank You - Professional talk , quite
benefits for us as an NRI. Please made more videos for NRI returning home country.What are the Tax obligations.Thank You.
Thank you for your support.
For the past 10 years Indian real estate had not given much return..inflation adjusted😢
Humility is an ability to value the presence of each human being on this earth. Our FM has it from her genes I think for dealing with taxes of all alike without biases.
Please explain one more time about NRI property of inherited property capital gain tax.
There is no Inheritance tax in India, However if you can make question more clear I will be able to answer it.
You end up with lock in of 5 years and only around just 5% interest with these bond. So I do not think your money even meeting inflation rate yearly. It is very bad form of investment to save capital gain. Also as previously captial gain was lesser after indexation, now you have to invest a big chunk of you sale amount (as your total capital gain just got huge) in these saving options. Really a bad decision by government.
if you invest the 50lakhs in bonds ( i am assuminy that you cannot invest more than 50 lakhs) and you live in a country that has a DTAA with India, although you do not pay any tax in India but do you still have to pay tax to the country you are registers in for tax purposes.
Complex, hope it was explained via tools like Excel. WIll help new comers
Great suggestion!
the revised rules are applicable to all Indians whether they are RIs or NRIs.
Absolutely 👍
Par Tribune news today, now govt allows option either LCTG 12.5% without indexation or 20% with indexation. There is another video by another CA who mentions peoperties purchased before April 2001 can be indexed and 12.5%. Very confusing, please check budget documents and clarify. Also if TDS for NRI, now reduced from 20% to 12.5% or not
I think you like NRIs very much. You could have said one statement that this rule applies to resident Indians as well as there is no change for both.
Thank you for commenting. This video is focused on NRIs and their taxation. While the rule also applies to resident Indians, our primary audience is NRIs. In this video CA Arun Tiwari forgot to mention that. We also make videos for Indian residents.
What about 8 years ago? How much tax we need to pay, if we sell now?
I am NRI like to sell properties of 1982 now. It will be to get it's valuation to reduce the tax or pay 12.5 % + 4 % TDS. PLZ make video when notification on valuation come from govt.
I think indexation benefit exists for property purchase before budget date .
Now the indexation is completely removed for NRI.
For more details Please contact our NRI Desk at cs@aktassociates.com or 8080088288.
Hello, I am writing this comment from USA. Your video is invaluable for NRIs. There many Indians in USA who are gradually becoming Citizens and thinking seriously to sell their Own property ( not inherited). Your tips will be very helpful to them. Suggest, keep giving the advice to NRIs on property as it is not much precisely discussed and is confusing too. Good luck..
@shekharraje5188
Thank you so much for your kind words! I'm glad you found the video helpful. I'll continue sharing insights on property matters for NRIs to help clear up the confusion. Stay tuned for more!
If you have any queries feel free to contact our NRI Desk at cs@aktassociates.com or 8080088288
Address TDS
Current rates will be double of what it used to be under indexation!
What about being a co owner of an inherited property. Does this law impact everyone both resident and NRi
Yes this changes for everyone.
For more details Please contact our NRI Desk at cs@aktassociates.com or 8080088288.
What about people who are OCI that means who given up indian passport/ citizenship and become citizens of other countries but have properties in India?
Yes, selling a property for more than you bought it can trigger capital gains tax on the profit.
For more details Please contact our NRI Desk at cs@aktassociates.com or 8080088288.
What other taxes apply other than 12.5% property taxes on a 10 year old property?
What of the property is owned by one who is Indian Citizen and other is citizen of say UK.
Indian resident have to pay 1% tds NRI have to pay 20%. NRI can apply for Lower TDS certificate to avoid 20% TDS.
For more details Please contact our NRI Desk at cs@aktassociates.com or 8080088288.
Sir
What is capital gains bond and how it works
Capital gain bond means its a Govt. bond where you can invest to save your capital gain tax.
For more details Please contact our NRI Desk at cs@aktassociates.com or 8080088288.
Sir, can you please share what should be the tds deduction for property sold by nri?
20% TDS need to pay by NRI.
For more details Please contact our NRI Desk at cs@aktassociates.com or 8080088288.
If you buy a house you will spend for repairs,maintenance.l,property tax paid. Why govt. Had not thought of that ? THESE cost should be added instead of indexation.
Yes you can add the updates and Improvements to the cost basis for CG calculations.Your cost basis for CG calculations will be Original acquisition cost + Improvements and updates.
there has been change by govt later to apply indexation
Is there also a change in TDS calculation? Means previously the TDS calculation is on the total sale value instead of actual capital gain for NRI
I am still waiting for clarity on this rather than just like
He don't know TDS
What about people who have OCI and owned property for over 30 years in India.
OCI Holder also same rule applicable.
For more details Please contact our NRI Desk at cs@aktassociates.com or 8080088288.
Same rule applicable for OCI holder also.
For more detail Please contact our NRI Desk at cs@aktassociates.com or 8080088288
I need your comments on my case. I have bought an apartment in December 2023 and I am planning to sell my house in September 2024. What is my position on CG.
Yes you have to pay Short term capital gain tax because you are selling the property less then 2 years.
For more details Please contact our NRI Desk at cs@aktassociates.com or 8080088288.
It will be simple. It is a Short Term CG and no hassle
I believe there was a clarification that properties bought or inherited before 2001 still get the indexation benefit. Can you please confirm this?
In case of properties purchased before 2001, the fair market valuation (not exceeding the stamp duty value) can be used as a base to determine the indexed price. The indexed price will then be reduced from the sale price for calculating LTCG that will be taxed at 20 per cent.
For more information, you can contact our NRI Desk at 8080088288 or email us at cs@aktassociates.com
As per Global Income rule in US, we need to pay tax in USA on India Capitan gains right? whether its Mutual Funds or Real Estate ?
Yes, you are required to pay tax in the U.S
If you need more information feel free to contact our NRI Desk at cs@aktassociates.com or 8080088288
@@AKTAssociatesOfficial Does it apply to Non US Citizen as well? as an H1B Visa holder and only Tax resident in US?
If you are in US you will end up paying higher taxes as us cap gains taxes are at 20% so you will end up paying the diff here in the us
You did not tell the crowd that if you bought a property recently then your gain is also less compared to long term. So you are lucky to get less capital gains does not arise. People who bought long time ago gained heavily n they can afford to pay the 12.5 gains with pleasure.
Give me an example when removal of indexation is a loss to taxpayers.
In case of inheritance property bought in 1989 does the new rule of 12.5% tax apply. And can you apply for lower TDS. Thanks.
Yes, the new 12.5% LTCG tax applies to all property sales, including those bought or inherited before 2001 and you can apply for lower TDS also.
For more information contact our NRI Desk at 8080088288 or email us at cs@aktassociates.com
Thanks for the info.
Can you explain how to sell gold that one has bought for children legally and how to send the money abroad
I'm an OCI with 1 property overseas and 1 property in India which i will sell and invest the proceeds into another property in India - will the buyer deduct tds & how do i claim it back as i will be reinvesting in buying another property and can i add my so onto the new property that i buy all the funds will be mine.
When filing your income tax return in India, you can show details of new property investments and claim the TDS amount.
For more information contact our NRI Desk at at 8080088288 or email us at cs@aktassociates.com
What happens to capital gain if one is going ti use entire sale proceeds plus additional amount to buy a new residence?
If your reinvesting sale amounts to new property, you can claim a refund whatever TDS you paid when you sold the property.
For more clarification Please contact our NRI Desk at cs@aktassociates.com or 8080088288
सर आपके सब वीडियो बहुत अच्छे होते हैं सर क्या आप इसे हिंदी में भी बना सकते हैं क्योंकि हर इंसान को इंग्लिश नहींआती है थैंक्स धन्यवाद
प्रतिक्रिया के लिए धन्यवाद. आपके अनुरोध पर ध्यान दिया गया है, और हम हिंदी में भी वीडियो बनाने का प्रयास करेंगे.
What about NRI who sold inherited property in April 24 before the budget announcement . Will the new rule will be applicable or we are saved with the old rules
When you file ITR next year new rule will applicable to you.
For more details Please contact our NRI Desk at cs@aktassociates.com or 8080088288.
@@AKTAssociatesOfficialare you 100% sure . I am also a chartered accountant am my understanding is from my colleagues in Europe that that any transactions after the budget date the new rules will be applicable . But if you say than I think you are professional and you are correct as you are confident in your answer
If you own ancestral agriculture property what is the capital gain? Fir NRI
For an NRI, capital gains on ancestral agricultural property are generally not subject to tax if the property is in a rural area, but they may be taxed if it is in an urban area.
However as for as my reading goes govt has brought back indexation rule for properties purchased before 23/ 07/24. For such properties seller has an option to use indexation to arrive at capital gains and the gains so arrived at would be taxed at 20%, whereas if no indexation is done then tax at revised rate of 12.5%.
Am I correct ?
Or this amendment applies to only resident Indians and not to NRIs ?
Pl respond
Indexation is removed NRI now can't take indexation benefit.
For more detail Please contact our NRI Desk at cs@aktassociates.com or 8080088288.
Does Interest paid on that property is deductible from the capital gains when selling?
Yes, the interest paid on a loan for the property can be deducted from the capital gains when selling, but only if the loan was taken for the acquisition, construction, or improvement of that property.
@@AKTAssociatesOfficial can you pls help me withdraw my NPS
How much is TDS for NRI. This is very important. Address this point.
Please contact our NRI Desk at cs@aktassociates.com or 8080088288 for more detail.
Will the bonds be taxed on maturity if you take distribution?
Hello Sir,
I have a question. Currently, I am an NRI and am considering purchasing property in my name. After a few years, I plan to move back to India permanently, and I may sell the property in the future. In this scenario, would I still be considered an NRI at the time of sale, and would I be required to pay TDS on the property sale as an NRI?
Thank you for your assistance.
once you return to India first 3 year your status will be NRI only after 3 year your status became a Indian resident tax will applicable as per your residential status.
For more details Please contact our NRI Desk at cs@aktassociates.com or 8080088288.
I (NRI) sold my property in Dec 21 and reinvested in a New property in Feb 22 to get back the CG tax. Till when do I have to wait to sell the New property so that the tax refunded earlier is not taken back by the government?
Sir where is your office in India ?
We are based in CBD BELAPUR NAVI MUMBAI.
For more details Please contact our NRI Desk at cs@aktassociates.com or 8080088288.
Indian govt is very clever. Those who paid less white, and more black money to buy property ( more black to white ratio)will finally end up tax on the black element when they ho to sale the property. The trend is more white money and less black money ratio!
Correct me if I am wrong in this thinking?
Correct.
As NRI I bought a flat 4 years ago. As I am planning to sell the flat, do you think I should wait for the govt evaluation report before I sell. Please advise.
Govt. valuation report you take it from Sub Registrar office now also.
For more details Please contact our NRI Desk at cs@aktassociates.com or 8080088288.
In both the options can i still invest an amount of 50 lacs in capital gain bonds to save tax
yes you can invest in capital gain bonds to save tax
As an NRI if I sell for 1 cr I end up having capital gain of 90,00,000 means paying 11,25,000 TDS. In turn, what service I would get from India ? Or to my property buyer( at least he could enjoy benefits from my TDS !) There is trash, filth and poor road in and around my area. The government or municipal authority denied to collect garden waste and tree Cutting/pruning for which I paid about 60,000. Tax like EU but act like Somalia/Zaire/Chad. Compelling PIO to hate his own country 😡
What to expect when a NRI wants to gift the property to their sibling in New Delhi, India?
As an NRI what should I invest in now as real estate doesn’t seem interesting due to the new tax slab?
Watch this video, It will give you an Idea
th-cam.com/video/THj5F5G2xUQ/w-d-xo.html
Does this apply to an oci as well?
Yes, It's applicable to OCI as well.
For more information feel free to contact our NRI Desk at cs@aktassociates.com or 8080088288
Thank you
These NRIs had taken every possible benifits from the country and migrated outside but they are crying when time for payback. They are very loyal to the country where they are staying by paying happily taxes as high as 40%. They will remember India only in crisis.
@@arunkumarrv4624 Well said 👏👏👏, I am NRI and totally agree with your statement. To be frank 90% of NRI’s are selfish.😟
Is this NRI tax rule on sale of property applicable to people working in Merchant Navy?
Yes same Tax Rule applicable for Merchant Navy as well.
Feel free to contact our NRI Desk at cs@aktassociates.com or 8080088288
I have a settlement deed in my favour executed by my father.
Can I in turn execute it in favour of my wife by means of a settlement deed and if my wife wants to sell after a year
Of my execution which date i should take for working out the capital gain
We request you to take consultation with our CA for more clarification.
Please contact our NRI Desk at cs@aktassociates.com or 8080088288.
If you are an NRI stay away from India. FM will bring new taxes. Someone asked me to send money to India. Hah
Hello, the new capital gains taxation rules apply even for residential vacant plots also, or only for houses? I have a plot just on my name. Can I add my wife now as the jount owner? If so, what is the procedure? Thanks.... JR
Yes, the new capital gains tax rules apply to residential vacant plots as well. You can add your wife as a joint owner, but we recommend consulting CA Arun Tiwari for specific advice on the procedure and potential tax implications.
For more information, you can contact our NRI Desk at 8080088288 or email us at cs@aktassociates.com
Thankyou for the video and valuable information. We got a flat in 2012, so if we sell do we pay 12.5% tax is that right? I was hearing for NRI's Tax is 42% and hence they need to give the property as gift deed to the sister or brother who does have any property in there name and can pay 20% less tax. Also does the same 12.5% rule apply for the NRI who wants to buy flat even thought they had a flat in another place.
@lavanya996
Can you contact our NRI Desk at cs@aktassociates.com or 8080088288.
Our team will help you out.
If nri gifts property to resident wife and she sells is tds applicable if sale value less than 50 lakhs?
Since the indexation has been restored (20% with indexation or 12.5% without indexation whichever is beneficial, this video is no longer valid/ helpful.
Indexation restored only for transaction upto july 2024
Can an OCI invest in capital gain bonds?
Yes, an OCI can invest in capital gain bonds under Section 54EC of the Income Tax Act, 1961.
India is a country as Mr Chaddha of AAP party said in parliament Indian government collects tax as UK And Give services like Somalia.
Very true...the policy makers or the panel who drafted this ie.. abolishing of indexation for long tern capital gains..is a moron and stupid
Cause parties like AAP,,KHANRES,SP TMC ETC CONTRIBUTE HANDSOMELY TO CREATE LIKE SOMALIYA IN BHARAT WITH THERE ANIT INDIAN ACTIVITIES, CORRUPTION they are stoiges of CIA /SOROS thts the reality current govt trying ti save the country n they are doing exceptionally good job
True
Rome wasn't built in a day , so in order to get the services you allude to 1) wait till all the infra has been upgraded ( country wide ) , 2) start paying at every nook and cornor ...and I mean for even parking your car on the front street of your house... and i haven't even star5ed paying the exorbitant train/air / metro fares !!
They themselves are eager to making it Somalia .. although right now we r at much better place .. tax is not like USA canada as we get nice interest even in saving account which they don’t have in canada
Is there any restriction for NRI to buy land?
Yes, NRIs cannot buy agricultural land in India.
For more information feel free to contact our NRI Desk at 8080088288 or email us at cs@aktassociates.com
Hi,
I have been advised that I need to pay 22.88% as an OCI holder, on sale of an apartment.
Is this correct??
Yes it is right, however you can apply for lower tds by applying for ltds certificate, For more contact 8080088288
@@AKTAssociatesOfficial Thank you, will be in touch
Dear AKT, I don’t agree with your analysis. Tax is a function of three variables, first is cost of acquisition, second is the rate of appreciation of the property, third is indexation, fourth is the tax rate itself.
In your video, you are saying that the assets acquired a long time ago will suffer from removal of indexation. But this is not true, as the answer depends on the rate of appreciation vs the indexations ( inflation ) rate. Finally, we need to factor in the reduction from 20% to 12.5%. So if you a acquired in 2001 and sold in say 2024 the indexation is about 363, roughly 5% per annum, but if you rate of appreciation is say 17%, you would be better of in the new regime Will not lose as you say in your video 😊
Thank you for commenting
What is tds for nri now on sale of property
Long Term Capital Gains (LTCG) 12.5% and Short Term Capital Gains (STCG) 20%
For more information contact our NRI Desk at 8080088288 or email us at cs@aktassociates.com
@@AKTAssociatesOfficial0:00
If your property bought before 2001 , you will get indexation benefit
@@AKTAssociatesOfficialsir, previously buyer was supposed to do TDS of 22.8% , now is it reduced 12.5%
Hello sir, I am confused about indexation calculation of older properties in the new rules, for example I bought a residential plot in 1997, does it mean that I can use a fair market value as of year 2000, then use this value as my purchase value? Where is indexation coming into picture in the new rules for older oroperties before year 2001?
Sir, if I sold the property in April this year, will the new rule apply retrospectively? Thank you. Rajiv
New rule applied on immediate effect after announcing the Budget.
Sir I hold POA for one house whose owner is my relative who lives abroad. If i sell that house, who is responsible for paying capital gains. I assume it is original owner/NRI?
Yes, the capital gains tax liability would fall on the original owner/NRI.
For more information feel free to contact our NRI Desk at cs@aktassociates.com or 8080088288
Can one add cost of interior works ( wardrobes n kitchen cabinets, etc) to the buy value to reduce the capital gain. If i sell this flat, then what proof is required required whil filing the ITR to show this additional cost.
Yes, you can add the cost of interior work, but you will need to provide proof of payment and a receipt.
For more information contact our NRI Desk at at 8080088288 or email us at cs@aktassociates.com
I am an NRI who recently sold my inherited property in June 2024 before the latest budget. To offset capital gain tax, I have invested in govt. bonds to the tune of Rs. 50 lakes. Will I be subjected to capital gains of 12.5% or based on the indexed value of 20%. Thank you.
Please consult CA Arun Tiwari
contact our NRI Desk at 8080088288 or email us at cs@aktassociates.com
Sir we need to calculate that to tell you, Advise you to reach out to Client support at 8080088288
Look at her smile OMG
Sir,,if i cant get LDC,,if i pay 20% TDS,,can get back this money?
Yes, you can claim a refund of the 20% TDS by filing your income tax return
What about T D S for NRI When they sell there property.
NRI will send huge remittance home worth billions. This is what you will get 😮
In my opinion, it is effective from 23 th July 2024.
Yes, you are absolutely right!
This budget is not for middle-class people.
In simple, government want 60 to 80% from our income whether by direct tax or indirect Taxes or both.
Remember, only salaried people are paying huge taxes in india 🇮🇳..😅
Sad reality. 🙁
BJP government always worked for Ambani and Adani and not for comman man , all the People who Voted for BJP now know what a Monster they have brought to power
@@KPFinancialservices True in all progressive economies. There is no free lunch except for beggars.
Sir your explanation is too confusuious!
टैक्स पयेर्स कमाई मतलब देश की कमाई
जब टैक्स पयेर्स फैसिलिटी मांगे तो : मैं लसन प्याज़ नहीं खाती
Ltcg is changed again. Make new video
We have already posted a new video.
th-cam.com/video/mcpWRSSGKpU/w-d-xo.html
Poor explanation...more doubts than answers. Must improve your presentation...as there are other sites giving same info to NRI, in a better mamner
bad video. Doesn't cover how much TDS has to be deducted by the buyer. Instead of repeating get straight to the point or give some examples
For more details Please contact our NRI Desk at cs@aktassociates.com or 8080088288.
Finance Minister Budget .is very bad..
Many budgets are coming after the new budget written by Adhani and presented by FM in Parliament. The budget was prepared, thinkng that BJP will get 400+ seats in Parliament. Now they have to make democratic budget. Thanks to opposition for bringing democracy back in to Parliament.
Can you invest all the capital gain into the bond or there is a restrictions ? Pls let me know
@@manjusyogadance9570and There was an exemption from capital gain tax ,if we invest it in NHA or REC bonds for three years , then they extended it to five years or we have to invest it in real estate with in next three years. I wonder Adhani was aware of this when he made the budget. How ever there are many mini budgets coming after this and hope there will be a clear idea about these sooner or later before BJP lose the power.
It's great to see you guys sharing your views and engaging in discussion.
As an NRI, am I eligible to invest in CG Bonds to avoid Taxes on selling my residential property ?
Yes you are eligible for CG Bonds, you can save taxes but you cant avoid it.
Watch this video : th-cam.com/video/jp-iAmhdXLo/w-d-xo.html
PLEASE MAKE VIDEOS IN HINDI. IT WILL EXPAND YOUR VIEWER BASE TOGREAT EXTENT AND BENEFIT MORE INDIANS.
Sure I will try soon
Very simple. If the property was for 10 lak now 1 crore and 90 lak is CG then at 12.5 percent then it will be 11.25 lak. With indexation 70 lak cg means 20 percent is 14 percent.
Because of this stupid things, people are selling for 70/30 cash and evade taxes
Now NRI will not invest in India...loss again
Nirmala is mentally sick F.M.
Instead of simplifying taxes she goes on complicating every year.
To open an NRI / NRE bank account, you need (1) your ID passport and ICO both documents identify your ID and residence, but Banks also demand TIN (Tax identification No). The Indian Banks can share your information with the income tax department of one's country of residence. Every individual should declare their income from all sources to the Income Tax Department. Still, when that information comes from 3rd party, then an individual can not defend or deny that information.
The Indian Rupee is always on the decline and losing value. Think carefully before you open an NRI account. You will lose the value of your deposit and you can get problems problems with your country's Income Tax department.
You have to pay more taxes. In India people living standards are not improving but government is increasing taxes day by day. Modi has destroyed whole country except his friends Adani and Ambani. Rising inflation, unemployment, standards of education and Healthcare systems are the key issues Indian must address regardless which political party or ideology you support.
Try to visit India in at least 1-2 years bro, India is not same as 12 years back, huge infrastructure development is in progress, Freeways are on par with USA, we need more people like Adhani to develop ports and improve logistics infrastructure to compete with China, India digitization progress shocked the world, even beggars are using paytm,UPI payment system… 🤔
Do not speak Clown RG language. Who is getting contract as there is a system for awarding contracts. If anything is there then all these parties like Soros n china Paid parties wud have gone to courts . Since nothing is there n they themselves are giving contracts in their state govt to Adani . U can check. So be out of Modi phobia
Dear sir, besides giving information through video, how your association helps to NRI in property matter. Please share your email for convenience of interested NRI.
Please contact our NRI Desk at cs@aktassociates.com or 8080088288
AKT Associates has been dealing with NRI taxation for the last 9 years. Our main service is providing NRI Lower TDS Certificates, and we also offer NRI legal services. Through our TH-cam channel, we create videos to raise awareness among NRIs and help them comply with Indian tax laws.
To know more you can check our website aktassociates.com
@@AKTAssociatesOfficial thank you