Posted On
7/17/2016
3:19:16 AM
by
Sm
I presume that the flat is still in your brother's name. In that case I think the best course would be for him to send you a PoA with which you can sell the flat. Whatever you have lent him, he can give you from the sale proceeds. Your brother would be liable to pay capital gains tax on the profit made(sale price less inflation adjusted cost). As another person has pointed out the buyer has to deduct TDS and if the TDS is less than the tax payable, the difference has to be paid. There will be no tax implications for you.
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Posted On
7/17/2016
3:20:33 AM
by
Sm
But I heard somewhere that now they are not accepting PoA for selling property in India. In that case your brother would have to come down.
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Posted On
7/17/2016
4:05:50 AM
by
BS
Flat is registered in my name as per the Gift deed registered at registrar office, where me, my brother and witness signed.
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Posted On
7/17/2016
4:16:07 AM
by
Ravi
Why the hell so many taxes involved.
To buy a thing is easy but with the Tax its like doomsday.
Are they looting us?
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Posted On
7/17/2016
4:31:54 AM
by
Sm
@BS - as the flat is already in your name, the capital gains tax has to be paid by you. You can take the cost of the flat as indexed 35 lakhs and calculate the capital gains. You can refer to https://taxofindia.wordpress.com/2015/12/02/all-about-capital-gains-on-sale-of-gifted-property/ regarding capital gains. The net proceeds (after tax) is what you will have with you. In this deduct whatever is due to you. The balance amount you send from here. RBI allows resident individuals to remit upto $250,000 per year abroad. But you are an NRI and cannot remit under that scheme. The money in your NRE account you can freely remit.
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Posted On
7/17/2016
11:38:14 AM
by
S. R.
Every state has different property laws, one need to consult local CA. If you do not have time, CAs can prepare all paper work.
You can not withdraw the money from selling price of a flat except the principle amount i.e. the cost of the flat. You will be forced to reinvest by buying another property or invest in govt. bonds etc. till maturity. For all this, you will have to declare all your income in india and pay income tax returns also.
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Posted On
7/17/2016
11:38:14 AM
by
S. R.
Every state has different property laws, one need to consult local CA. If you do not have time, CAs can prepare all paper work.
You can not withdraw the money from selling price of a flat except the principle amount i.e. the cost of the flat. You will be forced to reinvest by buying another property or invest in govt. bonds etc. till maturity. For all this, you will have to declare all your income in india and pay income tax returns also.
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Posted On
7/17/2016
11:45:58 PM
by
LJ
Dear BS,
Contact Mr. Salu (Income Tax Advisor) in Kerala
+91-9447-432299
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Posted On
7/18/2016
12:12:29 AM
by
Advisor
If the flat is more than 8 years old, you may not need to pay any capital gains tax. Because according to the current cost inflation index, 65 lakhs now is less than 35 lakhs 8 years back and there is zero capital gain. If you have any bank statements or other documents showing that the flat was purchased using money from NRE account, then the bank with RBI aproval will allow you to deposit the sale price back to your NRI account.
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Posted On
7/18/2016
1:27:33 AM
by
Friend
Advisor,
Are you sure about "the sale price back to your NRE account"?
I know that only the money which we gave when buying the house(in this case 35 lakhs)not the full sales price can be deposited in NRE Account.
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"If you have any bank statements or other documents showing that the flat was purchased using money from NRE account, then the bank with RBI aproval will allow you to deposit the sale price back to your NRI account".
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Posted On
7/18/2016
1:43:21 AM
by
BS
Dear SSB,
Awaiting your suggestions.
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Posted On
7/18/2016
3:09:41 AM
by
Sm
Excellent observation by Advisor - If the flat had been bought more than 8 years back no capital gains. Hence no tax to be paid
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Posted On
7/18/2016
3:13:01 AM
by
Sm
"You will be forced to reinvest by buying another property or invest in govt. bonds etc. till maturity." - This is true if there is capital gains and you do not want to pay capital gains tax. If you are willing to pay the tax, then you can use the money as you see fit.
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Posted On
7/20/2016
2:54:05 AM
by
BS
What is the approximate capital gains tax to be paid? once paid the remaining can be used as we wish or to be used for purchase of house only?
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