I am an NRI, and sold a property in India recently. I had to pay a 23% TDS of whole sale amount (75 lakh). I see that India tax rules allow to buy another property (similar to US 1031 exchange rules) or to invest in specific highway bonds of profit amount to allow claiming that tax back when filing ITR. Has any NRI here done this before? Please share any experience you have. What investment do you recommend? Was it easy to get the refund? TC:550k
Real “E”state.
Once you file your ITR specifying your capital gains , you can claim back excess tax paid .
You can request to pay lower TDS where they calculate TDS on your real estate gains and withhold that amount, instead of witholding tax on your entire sale amount. This procedure might take a minth or two.. Contact your CA. They would know...
OP is the kind of person who himself is corrupt but will give justification of lots of corruption to not go back to India.
That's ridiculous! Since when is tax planing an attribute of corruption? OP is only looking for tax saving provisions for capital gains from sale of property. Don't you save taxes by making necessary savings or investments? If you do, does that make you corrupt?
Pay your taxes bro
You paid the advance tax. First calculate the Capital gain considering the indexed cost of acquisition and current sale price. If the Capital gain is positive, use that to buy another property ( I believe you can do it in 3 years) or invest upto 50L in Bonds within 6 months. The bond purchase may not be online ( not sure), you might have to work with bank/ broker for the same
The term is "tax saving". "Tax avoidance" is an illegal activity.
Tax avoidance is legal. "Tax evasion" is illegal
Wrong. They are both illegal. https://en.wikipedia.org/wiki/General_anti-avoidance_rule_%28India%29?wprov=sfla1 Tax saving is when you use provisions as intended to lower your tax liability. If you invest in 80c compliant assets, you are saving tax Tax evasion is where you hide income from govt to 'evade' taxes. Like any illegal income or any income from legal sources but not reported to the govt for tax assessment Tax Avoidance is where you find loopholes in the system, and claim benefits for provisions without any real intent to meet the goals they are defined for. For example, if the govt offers a tax discount for operations of business in an underdeveloped area, and you open a dummy branch there without doing any actual business, just to claim the benefits, that's Tax avoidance