Capital gain tax on real estate property in India

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Capital gain tax on real estate property in India

I am an NRI who is living in USA. I sold a property in India which I had inherited. Will United States Government forgive Capital Gain tax if I invest the sale proceeds to buy Indian Government bond to avoid Capital Gain Tax in India

Profile photo of Maneesha Shah Asked By: Anonymous 2 replies 0 helpful answers Last Updated: 3 months ago
  • Profile photo of Maneesha ShahAnonymous

    I am an NRI who is living in USA. I sold a property in India which I had inherited. Will United States Government forgive Capital Gain tax if I invest the sale proceeds to buy Indian Government bond to avoid Capital Gain Tax in India

  • Profile photo of Mitilesh GaglaniMitilesh Gaglani
    Moderator

    Hi,

    No, there is no provision for avoiding capital gain tax on the sale by investing in Indian Govt. bonds in US.

  • Profile photo of IlaxiIlaxi
    Participant

    I am Us citizen. I have a property in India . Bought in 2007. Planning to sell now. Purchase price 20 lakhs. With indexation it is , say 40 lakhs as adjusted basis. If I sell for 60 lakhs, the Long term capital gain is 20 lakhs (60-40=20). If I invest 20 lakhs gain in govt bond, I do not have to pay Indian Income tax. However I do have to pay US taxes. Question: For the US capital gain what is my basis – 20 lakhs original purchase price? OR Adjusted basis of 40 lakhs after indexation? I understand all amounts I will have to convert into US dollars at the exchange rate at purchasing and selling dates.

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