Good Info Sir. have a question. I have an empty residential plot in India (no buildings/ construction) I like to sell. Does the IT laws of India allow me to re-invest the cap gain to buy another property with in 2 years. I hear that the re-investment of cap gain is only allowed for residential property sales and not for gain from empty plot sales.. Is that true?. Again this rule doesn't matter to me being a NRI in US, where the tax laws don't allow avoiding the cap gain tax on foreign properties by way of re-investment. Just wondering what the rules in India are with respect to reinvestment of cap gain from plot sales. Thanks.
This is a common question most people have. And yes you are right that being US citizen, you ultimately have to pay the tax even if you avail deduction in India. Yes you can save capital gain on sale of plot by buying a new residential house property. But there’s a difference. If you had sold the house property, then you only need to invest the capital gain amount, however if you are selling a plot, then you need to invest the entire amount to save full capital gain tax. Hope that clarifies
@@bicaps1313 - Thanks for your quick response. So if i understood you correct in the case of a plot sale, i have to invest the entire sale proceeds (not the CG) to avoid the tax in India.
Thanks for the information. My question is pertaining to the under construction properties. Eg if the property was bought in 2011 when it was not built and we pay over years instalments till 2019 the year when it was delivered and construction finished . The registration was done in 2019. How to calculate cost indexation . Which year to be considered for date of purchase . How the installments be reflected in the ITR as there are no such mechanism to show installments over different years. Please advise
@@MrAshu20101 the right in the subject property arises on allotment and hence date of allotment letter must be considered for all purposes including indexation and period of holding.
Good Info Sir. have a question. I have an empty residential plot in India (no buildings/ construction) I like to sell. Does the IT laws of India allow me to re-invest the cap gain to buy another property with in 2 years. I hear that the re-investment of cap gain is only allowed for residential property sales and not for gain from empty plot sales.. Is that true?. Again this rule doesn't matter to me being a NRI in US, where the tax laws don't allow avoiding the cap gain tax on foreign properties by way of re-investment. Just wondering what the rules in India are with respect to reinvestment of cap gain from plot sales. Thanks.
This is a common question most people have. And yes you are right that being US citizen, you ultimately have to pay the tax even if you avail deduction in India.
Yes you can save capital gain on sale of plot by buying a new residential house property. But there’s a difference. If you had sold the house property, then you only need to invest the capital gain amount, however if you are selling a plot, then you need to invest the entire amount to save full capital gain tax.
Hope that clarifies
@@bicaps1313 - Thanks for your quick response. So if i understood you correct in the case of a plot sale, i have to invest the entire sale proceeds (not the CG) to avoid the tax in India.
Yes, you got it right
Thanks for the information. My question is pertaining to the under construction properties. Eg if the property was bought in 2011 when it was not built and we pay over years instalments till 2019 the year when it was delivered and construction finished . The registration was done in 2019. How to calculate cost indexation . Which year to be considered for date of purchase . How the installments be reflected in the ITR as there are no such mechanism to show installments over different years. Please advise
@@MrAshu20101 the right in the subject property arises on allotment and hence date of allotment letter must be considered for all purposes including indexation and period of holding.