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 1●1●1

One Answer:

oldest newest most voted

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 5.2k●3●20

link

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

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](http://url.com/ "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

learn more about Markdown

Tags:

income-tax ×778
capital-gains ×342
long-term-gains ×326
non-resident-indian ×29
residential-apartment ×1

Asked: Nov 09 '11 at 02:19

Seen: 1,834 times

Last updated: Nov 09 '11 at 13:54

Capital Gains Tax

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

Follow this question

Related questions