Selling Property in India by NRIs: Tax Differences
NRI selling property in India faces same tax rules whether buyer is Indian resident or another NRI.
In brief
NRI selling property in India faces same tax rules whether buyer is Indian resident or another NRI. Selling residential property in India by an NRI to another NRI or Indian resident has identical capital gains tax rules, with long-term gains taxed at 12.5% after 24 months. Originally reported by mint.
Tax Rules for NRI Property Sales
Selling residential property in India by an NRI to another NRI or Indian resident has identical capital gains tax rules.
Taxable Capital Gains in India
Capital gains from Indian residential property sales accrue in India and are taxable there regardless of buyer type.
Long-Term Capital Gains Tax
Holding property over 24 months qualifies for 12.5% long-term capital gains tax without indexation.
Short-Term Capital Gains Tax
Holding property less than 24 months results in short-term gains taxed at slab rates with surcharge and cess.
TDS Deduction Rules
Buyers deduct tax at source on sale consideration, but often require seller to get lower deduction certificate from tax authorities.
India-Singapore Double Tax Agreement
Singapore residents can claim India-Singapore DTAA benefits but still face Indian capital gains tax on Indian property.
Foreign Exchange Repatriation
NRI can repatriate sale proceeds for two residential properties under foreign exchange laws with specific conditions.
What to remember
Selling residential property in India by an NRI to another NRI or Indian resident has identical capital gains tax rules, with long-term gains taxed at 12.5% after 24 months.
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