Q.1002 Capital gains tax

calculation in India on property

sold by NRI

Question: I am a NRI for 30 years. We had residential flat land in 1990 to 1991, we sold that for 9.5 lakh and reinvested that amount adding one more lakh in 2006. In today's market value of that flat 1 crore. We are planning to sell it next year. How much will I pay in taxes? Buyers most of them want to give cash and how can I deposit that cash in a bank? Need answer please. thanks Sudha Answer: Capital gains tax can easily be calculated on property sold in India and this is fully explained on NRI Information. Check the two links provided below where you will find step by step information on how to calculate capital gains on property sold in India. Read the article and you should be able to do the calculation is about five minutes! The links to the pages are shown below: 1. Calculating capital gains on sale of property in India >> 2. How to calculate capital gains on property sold in India - Saving on capital gains >> Taking cash is not recommended when selling property in India as buyers want to generally use cash money that they cannot account for. This is commonly known as black money. By accepting cash, the buyer will simply transfer his/her unaccounted money to the seller and then it becomes a problem for the seller as they will not be able to show the authorities where they got the money from. Such money cannot be deposited in bank accounts or be sent abroad through banking channels. You would be better off accepting a lower offer where payment is in legal form instead of accepting a higher offer with questionable cash.