I am currently a NRI by virtue of my profession (seafarer). Is there a provision for me to transfer overseas the funds arising from sale of property (agricultural and/or non-agricultural). What would be the tax liabilities and how can I minimize these liabilities?

Ans: With respect to capital gain query, it is advisable to take valuation report from approved valuer who will make report considering ready recknor value decided by concerned gov authorities as on 1 4 2001.

For account opening related query, better to contact your banker and for US tax laws query, please contact US Tax Consultant.

Ans: As an NRI, any capital gains arising from the sale of property in India are subject to taxation under the Income Tax Act, 1961. Here's how the taxation works and some strategies to minimize your tax liability:

Tax on Capital Gains: The capital gains tax is calculated based on the profit earned from the sale of the property. The gain is classified as either short-term capital gains (STCG) or long-term capital gains (LTCG), depending on the holding period of the property.
STCG: If the property is held for less than 24 months (two years), the gains are treated as short-term capital gains and taxed at your applicable slab rate.
LTCG: If the property is held for 24 months or more, the gains are treated as long-term capital gains. For NRIs, LTCG on the sale of property is taxed at a flat rate of 20%, with indexation benefits available.
Indexation Benefit: Indexation allows you to adjust the purchase price of the property for inflation, thereby reducing the taxable capital gains. This helps in minimizing the tax liability on long-term capital gains.
Exemptions and Deductions: Under Section 54 of the Income Tax Act, you can claim an exemption from LTCG tax if you invest the proceeds from the sale of the property in another residential property within a specified period. The exemption is available if the new property is purchased within one year before or two years after the sale, or within three years for under-construction properties. The entire amount of LTCG or the cost of the new property, whichever is lower, is eligible for exemption.
Capital Gains Account Scheme (CGAS): If you are unable to reinvest the proceeds from the sale immediately, you can deposit the gains into a Capital Gains Account Scheme (CGAS) with a designated bank. The amount deposited in the CGAS must be utilized for purchasing a new property within the specified time frame to claim the exemption.
Tax Consultation: Since tax laws can be complex and subject to change, it's advisable to consult with a tax advisor or chartered accountant specializing in NRI taxation. They can provide personalized advice based on your specific situation and help you navigate the tax implications effectively.
By planning your property transactions strategically and leveraging available tax-saving provisions, you can minimize your capital gains tax liability and maximize your returns from the sale of property.

Ans: As an NRI holding an Indian passport, you must first update your KYC status to NRI. To redeem shares/MFs as a nominee, submit the necessary documents, including proof of nomination, to the respective financial institution. Upon redemption, capital gains tax will apply, with rates varying based on the type and duration of investment. Additionally, TDS may be deducted. To transfer the proceeds overseas, provide the foreign bank account details and complete the required forms for repatriation of funds. Ensure compliance with RBI regulations and consider seeking guidance from a tax advisor.

Ans: An individual or HUF selling a residential property can avail tax exemptions from Capital Gains if the capital gains are invested in purchase or construction of residential property.

Ans: I am not a legal expert. However, you need to be aware of capital gains taxes on selling your house property. Further, if it is a residential house property which is held for more than 2 years then you also qualify for a deduction on your gains that you make.

Please note recent budget changes in India on 23 July 2024 will be applicable and you may not get the indexation benefits on the property.

As an NRI, you can only take out USD 1M from your NRO account per financial year.

Please consult your CA before moving ahead.