How can I avoid paying tax on selling property in India?

Exemptions from your Gains that Save Tax Section 54F (applicable in case its a long term capital asset)

1. Purchase one house within 1 year before the date of transfer or 2 years after that.
2. Construct one house within 3 years after the date of transfer.
3. You do not sell this house within 3 years of purchase or construction.

How much tax I have to pay if I sell my house in India?

Long term Capital Gains on sale of real estate are taxed at 20\%, plus a cess of 3\%, if the sale fulfils certain conditions. If you sell a property that was gifted to you, or that you have inherited, you will still be liable to pay capital gains tax on it.

How can I get my money back from India to USA?

NRIs, PIOs, or American Indians will have to report the money that they are bringing in to the US from India. They are to do this by filing Form 3520, an information return and not a tax return. Significant penalties are awaiting those who cannot file the said information return.

Can NRI sell property in India RBI permission?

Any sale or gift of a property by a foreigner without prior permission of the RBI would be illegal, the Supreme Court has ruled.

Can seller claim TDS on sale of property?

Yes, property seller can claim TDS on property which is already deducted. To do so, seller can easily file the income tax return online and claim TDS refund on immovable property deducted.

Do I have to pay tax after selling my house?

Do I have to pay taxes on the profit I made selling my home? If you owned and lived in the place for two of the five years before the sale, then up to $250,000 of profit is tax-free. If you are married and file a joint return, the tax-free amount doubles to $500,000.

How can I avoid CGT on my property?

If you are looking for ways to avoid your CGT, follow the given tips:

1. Use CGT allowance.
2. Offset losses against gains.
3. Gift assets to your spouse.
4. Reduce taxable income.
5. Buying and selling within the family.
6. Contribute to a pension.
7. Make charity donations.
8. Spread gains over Tax years.

What is capital gain tax on sale of property in India?

Capital gain, if any resulted from Selling of a property in India by an NRI is taxable under section 195 of the Income Tax Act, 1961. It is a difference between the sale price of the property and indexed cost of acquisition.

How are NRI’s taxed on sale of property in India?

For properties held by the NRI for fewer than 2 years, sales proceeds are treated as short-term capital gains and taxed at 30\% by the Income Tax Department in India. Properties held for more than 2 years will be taxed at 20\% plus applicable surcharge and cess. Cess is a tax for a specific purpose charged on top of the applicable tax.

How to sell property in India and bring money to USA?

Some of the paperwork required to sell property in India and bring money to USA is as follows :- Title of the property marked under the seller’s name. NOC (No objection Certificate) depicting that the property is not under any debts or any unauthorized conduct. (image attached below)

What are the tax implications of selling a property after 2 years?

If you’re selling your property after 2 years, then the sale will attract a long-term capital gains tax at 22.66\%. TDS has been introduced by the Indian government to collect tax at the source from where an individual’s income is generated.