New Budget for NRI Property Sale

#nri #nripropertyselling #budget2024 #aktassociates
Hi, The New Budget has changed the Tax on NRI Property, Let's discuss what is new

This Channel is dedicated to NRI Friends and planned to help them in, four areas
1) NRI Taxation, DTAA, and FEMA Compliance
2) NRI Property matters
3) NRI Legal matters, such as Will, Inheritance, Family Settlement, etc
4) NRI Investment matters in India

Pls feel free to ask your queries and I will surely study, Consult, and make a Video on that or at least answer in the comment section. Kindly note please Don't leave personal information in the comment section and send such queries to
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I strongly recommend going through the channel first as most of the queries I have already answered before paying for consulting.

Some Popular topics and related videos are listed herewith
1) Complete Stepwise Property sell Procedure for NRIs in 2023
2) Tax for Seafarer
3) NRI Property Sell Playlist
4) NRI QNA

#nri ,#aktassociates ,#nripropertyselling, #nri,#NRIRealEstate,#NRICommunity

[nabilzan]

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!!!!

[anildeshpande]

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.

[cookmaster]

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.

[RSDSinghRaizada-]

🙏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.

[sharma]

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.

[RavinderKaur]

What about 8 years ago? How much tax we need to pay, if we sell now?

[shashisharma]

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.

[chithradakshina]

Tell more about investing in government bonds. You mentioned that no tax if invested in government. Is there tax applicable when bond is released or at maturity?

[trendsmorrow]

For the past 10 years Indian real estate had not given much return..inflation adjusted😢

[surinderbrar]

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

[sarammamathew]

Please explain one more time about NRI property of inherited property capital gain tax.

[Siva-yooh]

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.

[ashokkarunakaran]

the revised rules are applicable to all Indians whether they are RIs or NRIs.

[hitesh]

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.

[AjayKut-mc]

Complex, hope it was explained via tools like Excel. WIll help new comers

[m.p.rastogi]

I think indexation benefit exists for property purchase before budget date .

[devendradevidasani]

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.

[JagjitSingh-oxzy]

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.

[TailsOfMischiefCuteKitten]

What other taxes apply other than 12.5% property taxes on a 10 year old property?

[shekharraje]

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..