What happens if NRI sells property in India?

Capital gains tax for property sold by NRI Do note here that the NRI seller will have to pay 21\% tax on the sale amount and not the profit money as LTCG. They have to undergo a lengthy process to claim refund. If the transaction is considered as a STCG, 30\% of the money earned as profit will have to be paid in taxes.

Can I sell my property in India and bring money to Canada?

Non-resident Indians can engage in property selling in India and can legally engage in money repatriation to Canada. NRIs should understand that transfer of money through such processes is illegal and may have serious repercussions from the IT Department and Enforcement Directorate.

Do NRI pay capital gains tax?

NRIs are subject to TDS at the applicable rates on capital gains earned at the highest tax rates, irrespective of any threshold value. The rate of TDS is 10 per cent on the equity-related capital gains and 20 per cent post indexation for other than equity investments.

What is the TDS rate for NRI for sale of property?

20\%
If an NRI is selling property in India, the buyer is required to deduct TDS at the rate of 20\% in case of long-term capital gains. However, if the property is sold before two years, TDS shall be deducted at the rate of 30\% as a short-term capital gains tax.

How can NRI avoid TDS on property sale?

Reduce your TDS Liability by filing application in Form 13 To reduce the TDS on Sale of Property by NRI, the NRI is required to file an application in Form 13 with the Income Tax Department for issuance of Certificate for Nil/ Lower Deduction of TDS.

How much money NRI can transfer from India to Canada?

A Resident Indian is allowed to transfer up to USD 2,50,000 equivalent in Canadian Dollars from India to Canada. The money can only be transferred for some specific purposes such as study abroad, maintenance expenses abroad, medical expenses abroad etc under the FEMA and LRS scheme of RBI.

What are the tax implications of buying property as an NRI?

As an NRI, you will be subject to a TDS of 20 per cent on the capital gains. If you sell the property within 3 years of purchase, you will be liable for short term capital gains tax at your respective tax slab.

What are the tax implications of selling property in India?

NRI’s guide to selling property in India. While in most cases, a person who qualifies under one would qualify under the other, it is better to review both definitions. If you sell the property after 3 years from the date of purchase, you will be liable for long term capital gains tax of 20 per cent.

Can NRIs sell their property in India?

If you are a NRI, OCI or PIO, you are allowed to sell any commercial or residential property you own in India. The buyer could also be an NRI or an Indian resident. However, in the case of agricultural land or a farmhouse, the buyer cannot be an NRI.

Do NRI buyers pay TDs on sale of property?

Even though the NRI seller is liable to pay tax only on the capital tax portion of the sale, the TDS will be deducted by the buyer on the sale value of the property. So, the NRI buyer needs to claim the refund of the excess TDS paid, which if not claimed may lead to losses for the NRI seller.