Q654. Sold property in India at a loss – Is capital gains tax applicable . . .
Question: I am a NRI residing in Qatar.
I purchased a flat in Chennai in Nov 2011 for 85 lacs. I am selling the same flat for 65 lacs to meet my medical expenses and
my son’s study in US. I am not repatriating the amount. Is capital gains tax applicable to me? Please advise me what I have
to do.
I am a blood cancer patient and taking treatment for the same.
Answer: Since you don’t have any capital gains and are selling your flat for a loss there is no capital gains tax payable. While I am not in a position to give you financial advice. I beleive you should contact a CA to help you file your tax return in a timely manner, for two reasons: 1. Financial planning, it appears you would have a short term capital loss, since you would not have held the property for three years. A loss on short term capital assets can be adjusted in future financial taxation years, depending on your tax status, such losses can be carried forward for up to 8 years. 2. Since you plan to remit money out of India for your treatment in Qatar and for your son’s education in USA, it is always wise to have a record of the source of money, as this information is required in some form or other by authorities when Rupee funds are send out of India. Your CA and bank should be able to guide you in this regard. I do wish you a speedy recovery, may God bless you.
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Q654. Sold property in India at a
loss – Is capital gains tax applicable
Question: I am a NRI residing in Qatar. I purchased a flat in Chennai in Nov 2011 for 85 lacs. I am selling the same flat for 65 lacs to meet my medical expenses and my son’s study in US. I am not repatriating the amount. Is capital gains tax applicable to me? Please advise me what I have to do. I am a blood cancer patient and taking treatment for the same. Answer: Since you don’t have any capital gains and are selling your flat for a loss there is no capital gains tax payable. While I am not in a position to give you financial advice. I beleive you should contact a CA to help you file your tax return in a timely manner, for two reasons: 1. Financial planning, it appears you would have a short term capital loss, since you would not have held the property for three years. A loss on short term capital assets can be adjusted in future financial taxation years, depending on your tax status, such losses can be carried forward for up to 8 years. 2. Since you plan to remit money out of India for your treatment in Qatar and for your son’s education in USA, it is always wise to have a record of the source of money, as this information is required in some form or other by authorities when Rupee funds are send out of India. Your CA and bank should be able to guide you in this regard. I do wish you a speedy recovery, may God bless you.
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RI Information
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educating and connecting Indians across the globe
© Copyright 2006 Nriinformation.com
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