Taxation & registration proceedure to buy a land in india from nri
sureshkumargoyal
(Querist) 13 April 2015
This query is : Resolved
A NRI LIVING IN USA WANTS TO SELL HIS LAND OF KOLKATA. I WANTS TO BUY THE SAME. PLEASE TELL US ABOUT THE PROCEEDURE OF REGISTRATION OF THE SAME AND INCOME TAX OR RBI PROCEEDURE AND LIABILITIES FOR THE SAME. AND WHAT PERMISSIONS SHOUD BE TAKEN BY THE NRI BEFORE REGISTRATION.
Advocate Kappil Cchandna
(Expert) 14 April 2015
Sir,
Registration can be done qua the power of attorney, but for taxation and monetary part you can speak to CA Karan at 9871563826....
Warm Regards
Kapil Chandna Adv 9899011450
Dr J C Vashista
(Expert) 14 April 2015
Purchasing of land from NRI involve handsome money, obviously you will be taxed, consult CA/Taxation lawyer in Kolkata.
Rajendra K Goyal
(Expert) 14 April 2015
NRI can entrust POA (as per procedure by NRI) to some person known to him for signing the sale deed and getting it registered.
If property is sold in India within 36 months from the date of purchase: short-term capital gains tax at the personal income tax rate applicable.
If property is sold in India after 36 months from the date of purchase: The arising long-term capital gains will be taxed at a flat rate of 20 per cent. Remember, for calculating long term capital gains, the indexed cost of acquisition should be deducted the sales proceeds received.
As per section 195 of the Income Tax Act 1961, in case of NRI, the resident buyer will have to deduct Tax at Source from the sales proceeds and pay the balance to NRI who can avoid the long-term capital gains tax on sale of property by investing the profit in capital gains bonds such as NHAI or REC or investing in another property in accordance with section 54/54 EC of the Income Tax Act 1961.
