I’ve been a US resident for the previous seven years. I had bought a flat in Kolkata 5 years in the past, which I need to promote. Will I must pay capital positive factors tax in India? How a lot cash can I repatriate?
—Vipin
NRIs who promote property located in India need to pay capital positive factors tax in India. If a home property is bought after a interval of two years, the capital positive factors are categorized as long-term capital positive factors. In case property is held for 2 years or much less, the positive factors shall be categorized as short-term capital positive factors. The calculation of capital positive factors tax shall be the identical as for a resident Indian. Lengthy-term capital positive factors are taxed at 20% and short-term positive factors shall be taxed on the relevant revenue tax slab charges for the NRI primarily based on the full revenue which is taxable in India for the NRI. When an NRI sells property, the client will deduct TDS @ 20%. NRIs can save tax on capital positive factors by claiming exemption by way of varied provisions of the Earnings Tax Act much like these accessible to resident Indians. In case any tax is payable within the nation during which the NRI is resident, he/she will declare advantages accessible below the Double Taxation Avoidance Settlement between India and such nation.
I maintain a non-resident abnormal (NRO) portfolio funding scheme (PIS) account, which I exploit to commerce within the Indian inventory market. Can I declare exemption for the short-term capital positive factors (STCG) tax that I pay for my trades?
—Title withheld on request
Normally, an NRI shall pay tax on capital positive factors from sale of shares listed on the Indian inventory exchanges the identical method as a resident Indian. The tax charges and the strategy of calculation of positive factors and exemptions accessible are much like these of a resident taxpayer.
Capital positive factors earned by an NRI are topic to TDS, which shall be deducted earlier than a fee on the market is deposited within the NRI’s account.
Archit Gupta is founder and CEO, ClearTax.
Supply: Live Mint