NRIS: INCOME TAX RULES TO KNOW WHEN SELLING INDIAN PROPERTY
Did you buy a property in India that you now want to sell at a profit? Before you move forward with the sale process, make sure to learn about the different income tax rules applicable to an NRI looking to sell a property in India. This blog discusses everything you need to understand about capital gains tax and tax exemptions. How Much TDS Must an NRI Seller Pay on The Sale of Property in India? TDS stands for Tax Deducted at Source. According to the law, the resident buyer must deduct 20% TDS as Long-Term Capital Gains Tax while purchasing a property from an NRI Seller if it has been held for over two years. However, NRIs have to pay a TDS of 30% if they sell their property in India within two years of buying it. It should be noted that this tax is deducted as Short-Term Capital Gains Tax. Don’t forget that the deduction also includes TDS plus surcharge, education cess, and health. The tax an NRI is liable to pay on the gains is determined by whethe...