243. Capital gains tax payable

by NRIs

Q: 1 My ancestral property is being sold. I am one of the 8 beneficiaries and the only one with non resident foreign national status. Am I liable for Capital Gains Tax. If so how would the capital gain will be calculated? and How will I pay it bearing in mind that I have no PAN Particularly how one can arrive at the base value. The in heritance arises from the death of my father who was one of the HUF. He died in 1969. Since then there are other deaths in my uncle and cousins family. The house is being inhibited by other beneficiaries until now. Q.2 Can the proceeds from the above sale be repatriated? what is the procedure? Q.3 Assuming that there is no tax liability can I request "no tax deduction at source" from the purchasers? Yours sincerely Jitu Shah A. As there are eight beneficiaries involved in the sale of the inherited property and it appears that some of them are living there, they may decide to pay you for your share of the property and retain ownership. When property is sold in India, capital gains tax has to be paid regardless of the citizenship of the seller. So even NRIs have to pay capital gains tax. not having a PAN does not exempt anyone from paying tax on Capital gains. I have posted a example of how to calculate capital gains using indexing factor to minimize tax liability, go to question number 211 to read this example calculation. The cost of acquisition for inherited property in India is usually the price paid originally by the person from whom property is inherited. After paying the required taxes, money can be repatriated. It would be best to seek guidance from a professional accountant in India to save yourself time and perhaps money.