Q621. Sale of Land in India by NRI, Capital Gains

Question: Dear Mr. Chand, Thank you for the wonderful work you are doing as it clarifies and alleviates many peoples doubts and unnecessary fears. I have a question. I have some property (only land and no construction whatsoever) in Chennai and I have been holding it for the last 18 years. I wish to sell the same, pay the long term capital gains tax and legally repatriate the balance to Canada. I trust the taxation on sale of empty plot of land is same as land with construction thereon, (i.e. using cost inflation index formula). Can you please clarify on the same? Also, I would appreciate getting some leads (name and Telephone #) on reliable Chartered Accountants in Chennai who are good at this. Thanking you in anticipation. Sincerely yours, Samuel

Answer: Gain derived from the Sale of non-agricultural land in India is taxable as a capital gain and indexing applicable to long term capital gains can be used to reduce tax liability. Indexing increases your cost base and hence lowers your gain.

Reliable Chartered Accountant in India

As far as recommendation for a reliable chartered accountant in Chennai, I am hesitant on recommending any service provider or professional in India unless I have dealt with them personally. Many non-residents quite often need the services of lawyers, accountants etc. and have a tough time trying to find reliable professionals to help them deal with situations in India. This is an area where NRIs can help each other by recommending people they have personally used. I am in the process of making a database, on this website so NRIs can select people if they wish to, based on recommendations of those who have used such services satisfactorily. For more information on this topic and to recommend someone in India visit Endorse Professional in India.