NRI property selling TDS taxes 20%

[quickgun_murugun]

11 minutes ago, Aghori said:

Example: NRI kid sends money to parents in India. Parents buy the property on their name. Parents sell the property after few years for profit. They pay whatever taxes and TDS Indian citizens need to pay. Then parents send money to the NRI kid as gift and they can send 100k per year without taxes. In this scenario, how is the NRI kid responsible for the 20% TDS?

daniki tax enduku... only when the property is in your name or you inherited it

[ABpropertyconsultenc]

4 minutes ago, Aghori said:

Example: NRI kid sends money to parents in India. Parents buy the property on their name. Parents sell the property after few years for profit. They pay whatever taxes and TDS Indian citizens need to pay. Then parents send money to the NRI kid as gift and they can send 100k per year without taxes. In this scenario, how is the NRI kid responsible for the 20% TDS?

Capital gain tax is same for anyone..

Tax kattaka evari Peru meda aite emundi..

TDS will be returned after filing returns..

Parents ki TDS 1 percent

NRI ki 20 percent..

Tax is same for both..

After filing returns extra amount returned..

[ABpropertyconsultenc]

1 minute ago, quickgun_murugun said:

daniki tax enduku... only when the property is in your name or you inherited it

After selling capital gains tax untundi..

[quickgun_murugun]

1 minute ago, ABpropertyconsultenc said:

After selling capital gains tax untundi..

adi parents who are indian citizens kadutharu kada... 

 

[ABpropertyconsultenc]

2 minutes ago, quickgun_murugun said:

adi parents who are indian citizens kadutharu kada... 

 

Adi evaru Katrina same amount..

[quickgun_murugun]

6 minutes ago, ABpropertyconsultenc said:

Adi evaru Katrina same amount..

normally NRIs ki additional ga evo estharu kada.. avi parents meeda unna property ammithey NRIS kattey pani undadu antunna... 

Assuming parents are Indian citizens.

[jathin]

2 hours ago, Aghori said:

Mastarsu, India la property sell chesthe 20% TDS tax kattali anta kada...with declining rupee value against dollar...is it worth investing in India? Is there a way go around this TDS tax? any insights or experiences?

 

It depends on options… how you want to handle the property sale. 

if you selling as USA citizen…the buyer will need to pay 23% TDS on you your name and PAN.  Here’s the breakdown of the amounts for approximately 23%.

1% is TDS and remaining 21.8% of the sale price amount totals to approximately 23% will need to be paid by the buyer as TDS in name of the seller using his PAN card or passport. And the buyer will deposit the amount into Seller NRI bank acct. And the seller (NRI) should file his taxes in India and claim his tax returns. Taxation will be calculated around 20.8% only on the capital gain amounts and will be deducted from the 23% that buyer paid on your behalf and the remainder of the amount will be returned back to your bank acct.

And then you can transfer your rupees from your NRI bank acct to USA bank acct. The Indian bank will ask for your tax filing and the receipt of the 23% amount paid by the buyer on your behalf.
Note: Don’t forget to collect this 23% TDS amount paid receipt from the buyer. You need this receipt for your Indian tax filing and for transferring the rupees to USA bank ($).

and these india paid taxes should be reported in USA tax filing too.

[ABpropertyconsultenc]

4 minutes ago, quickgun_murugun said:

normally NRIs ki additional ga evo estharu kada.. avi parents meeda unna property ammithey NRIS kattey pani undadu antunna... 

Assuming parents are Indian citizens.

Additional vi taggite taggochu..for above 50 lakhs registration value TDS is must..

[jathin]

3 hours ago, Aghori said:

Mastarsu, India la property sell chesthe 20% TDS tax kattali anta kada...with declining rupee value against dollar...is it worth investing in India? Is there a way go around this TDS tax? any insights or experiences?

if you are USA citizen why are you still thinking of investing in India. India is no longer profitable investment country for NRI’s. See my reasons stated below. Please counter me with valid reasons if you think there are ways to make profitable investments and easy way to convert your rupees to $$.

My personal experience investing in Indian properties, monitoring and maintaining the invested property for a period of time. Eventually sell, pay taxes in India and transfering back your investments into your USA banks and reporting in USA tax filing. This whole process is a big hassle. 99% chances you will loose money towards the end with dollar rate appreciation.

If you are a USA or other country citizen- it makes sense to dispose your old own invested or inherited properties in India and consolidate them in USA or other countries that you reside.

Moving forward, considering the new tax reforms and banking reforms … there is no scope for NRI’s investing in India and making profits. Those old golden days are gone (it done and dusted).

Currently, there’s high real estate prices (whether it’s residential, commercial or agricultural lands). In recent times both in Telangana and Andhra .. both govts have imposed higher registration charges by increasing the land prices, broker charges are high, profits are very minimum and top of it you need to pay capital gains and file taxes, and the dollar appreciation by the time you bring you invested amount back to USA will become a disastrous effort and will face many hassles during sale.

better do your investments in the country you reside. USA Dollar currency is always strong compared to other countries currencies. So, convert your rupees into USA dollars.

[ABpropertyconsultenc]

3 minutes ago, jathin said:

if you are USA citizen why are you still thinking of investing in India. India is no longer profitable investment country for NRI’s. See my reasons stated below. Please counter me with valid reasons if you think there are ways to make profitable investments and easy way to convert your rupees to $$.

My personal experience investing in Indian properties, monitoring and maintaining the invested property for a period of time. Eventually sell, pay taxes in India and transfering back your investments into your USA banks and reporting in USA tax filing. This whole process is a big hassle. 99% chances you will loose money towards the end with dollar rate appreciation.

If you are a USA or other country citizen- it makes sense to dispose your old own invested or inherited properties in India and consolidate them in USA or other countries that you reside.

Moving forward, considering the new tax reforms and banking reforms … there is no scope for NRI’s investing in India and making profits. Those old golden days are gone (it done and dusted).

Currently, there’s high real estate prices (whether it’s residential, commercial or agricultural lands). In recent times both in Telangana and Andhra .. both govts have imposed higher registration charges by increasing the land prices, broker charges are high, profits are very minimum and top of it you need to pay capital gains and file taxes, and the dollar appreciation by the time you bring you invested amount back to USA will become a disastrous effort and will face many hassles during sale.

better do your investments in the country you reside. USA Dollar currency is always strong compared to other countries currencies. So, convert your rupees into USA dollars.

Very reasonable answer..

[ABpropertyconsultenc]

Ikkada sellers unnaru.. no buyers..

Buyers kuda nri le maximum

[nuvvu_naakina_paalem]

3 hours ago, Aghori said:

Mastarsu, India la property sell chesthe 20% TDS tax kattali anta kada...with declining rupee value against dollar...is it worth investing in India? Is there a way go around this TDS tax? any insights or experiences?

any day investing in india is utter waste

 

you have to deal with taxation, rupee depreciation , kabja and other issues with security.

 

unless if you are planning to move back, never buy anything there

[Aghori]

56 minutes ago, ABpropertyconsultenc said:

After filing returns extra amount returned..

Are you saying NRIs can apply for tax refund in India to get that 20% TDS back? If yes how much will we get refunded?

[Aghori]

34 minutes ago, jathin said:

if you are USA citizen why are you still thinking of investing in India. India is no longer profitable investment country for NRI’s. See my reasons stated below. Please counter me with valid reasons if you think there are ways to make profitable investments and easy way to convert your rupees to $$.

My personal experience investing in Indian properties, monitoring and maintaining the invested property for a period of time. Eventually sell, pay taxes in India and transfering back your investments into your USA banks and reporting in USA tax filing. This whole process is a big hassle. 99% chances you will loose money towards the end with dollar rate appreciation.

If you are a USA or other country citizen- it makes sense to dispose your old own invested or inherited properties in India and consolidate them in USA or other countries that you reside.

Moving forward, considering the new tax reforms and banking reforms … there is no scope for NRI’s investing in India and making profits. Those old golden days are gone (it done and dusted).

Currently, there’s high real estate prices (whether it’s residential, commercial or agricultural lands). In recent times both in Telangana and Andhra .. both govts have imposed higher registration charges by increasing the land prices, broker charges are high, profits are very minimum and top of it you need to pay capital gains and file taxes, and the dollar appreciation by the time you bring you invested amount back to USA will become a disastrous effort and will face many hassles during sale.

better do your investments in the country you reside. USA Dollar currency is always strong compared to other countries currencies. So, convert your rupees into USA dollars.

It does look like a big hassle. Thanks for the detailed replies, appreciate them.

[jathin]

7 minutes ago, Aghori said:

Are you saying NRIs can apply for tax refund in India to get that 20% TDS back? If yes how much will we get refunded?

Usually -(TDS is 1% of the sale property and 20.8% on capital gains calculations for the sold property) minus from (23% TDS advanced paid by the buyer deducted from the sale price.)

and the india tax filing also have income brackets.. so your refund amount depends on your Indian income amount for that calendar year