Q530. What is the rate of capital gain tax in India - Selling property in India, how much will the tax be?

Question: Property received asancestral after death of parents if sold rate of incometax

Can the amount repatriated to usa

How much amount can be repatriated any restrictions

thanks

Vaijnath Pargaonker

Answer: The tax rate in India on property sold depends on how long the property was held. Since you say this is ancestral property, I assume it was held for more than three years and in such a case the capital gain on sale of this property would be considered to be a long term capital gain. Long term capital gains are taxed at the rate of 20% in India. The 20% rate is after indexation to reduce the capital gain has been applied. Can the amount be repatriated to USA? Yes How much can be repatriated? up to one million US dollars per financial year can be repatriated subject to payment of any applicable taxes. How to use indexation to reduce capital gains and how to repatriate are already discussed on this website. Here are the links to these pages: • How to calculate long term capital gains on property sold in India • Transfer money in India received from the sale of property to a foreign country