Govt Enforces ‘Melt and Pour’ Rule for All Steel in Public Projects Nippon Steel expected to finalize U.S. Steel acquisition at $55 per share NMDC Limited reports a 38% drop in Q4 FY24 consolidated net profit RINL to Raise $23 Million Through Land Sales Amid Crisis
Sale of immovable property in India owned by a Non-resident (NR) individual is a more tedious affair as compared to sale/ transfer made by a resident of India because of the compliances and tax implications attached to the sale. As a first step, the individual must correctly determine his/ her residential status in India with the help of the rules laid down in Section 6 of the Income-tax Act, 1961 (Act).
Residential status is determined afresh for each financial year and hence, the individual must analyse the same for the financial year in which he/ she intends to sell the immovable property in India. This determination of residential status plays an important part to further determine the scope of income taxability, rate of applicable tax and type of tax return form to be used for filing the Income-tax Return (ITR) in India.
How is the sale of immovable property taxed in India?
An individual who does not trade in sale/ purchase of immovable properties may incur capital gain or capital loss on sale of his/ her immovable property. This gain/ loss needs to be disclosed under the head ‘income from capital gains’ when filing the ITR since the immovable property qualifies as a ‘capital asset’ for such an individual. Such gain is calculated by reducing the cost of acquisition of the immovable property and eligible expenses from the sale consideration receivable on sale/ transfer of such immovable property. In case of long-term gains, benefit of indexation is available which helps to enhance the cost of acquisition by applying government defined cost of inflation index factors which essentially helps to lower the amount of capital gains and thus lower the tax liability for the taxpayer.
Also Read : SC reserves its ruling on whether royalty payable on minerals is taxable Iron Ore Dips for Second Week as Trump’s Steel Tariffs Shake Market Confidence
Adani Group will invest about ₹2.3 lakh crore through 2030 in India's most ambitious renewable energ...
Large Corporate 08-Apr-2024
Switzerland-based asset manager responsAbility Investments AG is set to invest up to USD 25 million...
Automobiles 29-Jan-2024
China’s response to tariffs imposed during former U.S. President Donald Trump’s administ...
China 17-Feb-2025
The Supreme Court on February 5 reserved its judgment in an appeal by the Indian Oil Corporation Lim...
Large Corporate 05-Feb-2024
Indian state-run steelmaker Steel Authority of India Ltd's Bokaro Steel Plant (BSP) has signed a pac...
Large Corporate 26-Apr-2024
Mining firm Vedanta Ltd said it is considering legal alternatives, including filing a review appeal,...
Large Corporate 07-Mar-2024