Praveen Sharma

I am presently contemplating the sale of land that I had inherited in Bangalore. I live in London and am not sure whether there are any Indian taxes that would be payable on the sale proceeds in India. Can anyone please provide further guidance on this issue?

Pinnacle

Dear Praveen
If you have been holding the Land for more than 3 years.. You come in the bracket of Long Term Capital Gains
If you sell that land and dont buy any other real estate in india, you have to pay 20% capital gain on the notional profit made ( Difference in Sale Price and cost price). Since in this case, you have inherited the land, the market value of that land as on the date you inherited, is considered your cost of accquisition. You would get the benefit on indexation and your capital gain would be less than 20%.

If you have been holding the Land for less than 3 years.. You come in the bracket of Short Term Capital Gains
You will have to pay almost 30-33% Gain Tax on the notional profit. You do not get any exemption even if you buy any other property

Hope you find the info useful

__________________
Ram

vikram

Wow!!!

The information from Pinnacle is useful, comprehensive and to the point.

__________________
Regards,
Vikram

Myhome

Thankyou Pinnacle , the answer to Mr.Sharma on Capital Gains was really helpful for me as well. Thanks .

Have a question for you ? just wanted to share your thoughts over it .

I hold a foreign passport ( only 2 months back I got , till then had a Indian Passport / I have a Pancard and already a taxpayer in India ) . In this situation if I want to invest in real estate mkt. say for example On my self owned land want to start a construction company , business of construct / build, sell houses etc ..

How is it I am going to be effected .

Please do let me know , your thoughts .

Regards

Amber

Pinnacle

Hi Amber
You accquiring a foreign passport doesnt affect your right of buying and selling properties in India. Currently, foriegners are not allowed to buy real estate in India, except in Goa.

Persons who are allowed to but are indian,s NRI's and Person of Indian Origin (PIO).

You can surely build on your land and sell those properties

Hope this helps

Gossioii1

This is a great post and makes me think of where I can fit in. I do a little bit of everything mentioned here and I guess I have to find my competitive advantage.

ks2071746

Dear friend,

Looks, same contents/posting I have read in other threads also?

ks2071746

piyushsh

Hi
If proceeds from long term capital gain on real estate is used to pay a bank housing loan, taken before selling the property(within 6 months) then is long term capital gain tax applicable.

Regards
Piyush

r1b2n3n4

I was told by someone that if property was inherited then there is no capital gains tax but rather an inheritance tax and then you pay wealth tax/income tax at the end of year.

Can anyone confirm or deny this?

Secondly what is considered the date of acquisition in case of inheritance? Is is the date the title was transferred to the cooperative society with the new owner's name?

rsksingh

Dear Praveen Sharma

The advice from Pinnacle is clear and concise in so far as your question is concerned.

However, as you live in the UK, I assume you are a British taxpayer. In that case there are also obligations on you to declare this to the UK Tax Authorities.

You will also need to deal with the repatriation of funds, if you would like to transfer the money to the UK

Should you need assistance in India or the UK, I would be glad to help.

RSK Singh