Hi, I am an NRI and had purchased an apartment in 1998 by availing housing finance from LIC, repayment of which was made from my NRE account. Now I need to sell the same at the current market price. Will I be required to pay Income Tax on this sale proceeds? Please advise. Thanks a lot. S.Kumar
1 Answers
You would need to compute long term gains and income tax using below computation:
Purchase Year = A
Purchase Cost = P
Cost Inflation Index (CII) for purchase year = X
Sale Year = B
Selling price = Q
CII for sale year = Y
Indexed Purchase price = P x (Y/X) = R
Long term capital gain = Q - R = S
Income tax on capital gain = S x 20%
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