Q661. No capital gains tax on sale of inherited agricultural land by OCI

Question: Hello Sir,

I am a citizen of USA and hold OCI. If I sell my inherited farming land in India, what will be the percentage tax on the sale

price?

Thanks

Sandhu

Answer: Depending on the location of the land you inherited, you many not have to pay no tax if you sell your inherited farm land in India. When someone sells their farm land in India, if there is a profit on the sale, their is no capital gains tax on the profit earned if: • The land that is NOT in an area within the territorial jurisdiction of a municipality or cantonment board, having a population of 10,000 or more, or in any notified area • The land should NOT be within 8 kilometers of civic bodies such as municipality, municipal corporation, town committee or a cantonment board. Check with a local accountant or lawyer and they should be able to advise you in this regard. In case the land falls within the limits of civic bodies, then capital gains tax may apply. Long term capital gains tax rate currently works out to 20.6%.
Disclaimer: Information provided is for general knowledge only and should not be deemed to be professional advice. For professional advice kindly consult a professional accountant, immigration advisor or the Indian consulate. Rules and regulations do change from time to time. Please note that in case of any variation between what has been stated on this website and the relevant Act, Rules, Regulations, Policy Statements etc. the latter shall prevail. © Copyright 2006 Nriinformation.com
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Q661. No capital gains tax on sale

of inherited agricultural land by

OCI . . .

Question: Hello Sir, I am a citizen of USA and hold OCI. If I sell my inherited farming land in India, what will be the percentage tax on the sale price? Thanks Sandhu Answer: Depending on the location of the land you inherited, you many not have to pay no tax if you sell your inherited farm land in India. When someone sells their farm land in India, if there is a profit on the sale, their is no capital gains tax on the profit earned if: • The land that is NOT in an area within the territorial jurisdiction of a municipality or cantonment board, having a population of 10,000 or more, or in any notified area • The land should NOT be within 8 kilometers of civic bodies such as municipality, municipal corporation, town committee or a cantonment board. Check with a local accountant or lawyer and they should be able to advise you in this regard. In case the land falls within the limits of civic bodies, then capital gains tax may apply. Long term capital gains tax rate currently works out to 20.6%.
N
RI Information
Informing educating and connecting Indians across the globe
Disclaimer: Information provided is for general knowledge only and should not be deemed to be professional advice. For professional advice kindly consult a professional accountant, immigration advisor or the Indian consulate. Rules and regulations do change from time to time. Please note that in case of any variation between what has been stated on this website and the relevant Act, Rules, Regulations, Policy Statements etc. the latter shall prevail. © Copyright 2006 Nriinformation.com
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