Capital Gains Tax

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

asked Nov 09 '11 at 02:19 by S KUMAR 111

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%

answered Nov 09 '11 at 13:54 by Pankaj Batra 5.2k320


Know someone who can answer? Share a link to this question via Email, Twitter, or Facebook

Your answer
toggle preview

Follow this question

Once you sign in you will be able to subscribe for any updates here

Markdown Basics

  • *italic* or __italic__
  • **bold** or __bold__
  • link:[text]( "title")
  • image?![alt text](/path/img.jpg "title")
  • numbered list: 1. Foo 2. Bar
  • to add a line break simply add two spaces to where you would like the new line to be.
  • basic HTML tags are also supported



Asked: Nov 09 '11 at 02:19

Seen: 1,834 times

Last updated: Nov 09 '11 at 13:54