NRIs can repatriate the sale proceeds, but FEMA regulations set limits.
FAQ Category: Services
How long should an NRI hold a property to qualify for long-term capital gains?
The property should be held for more than 24 months to qualify for long-term capital gains.
Is it mandatory for NRIs to file an ITR after selling property in India?
Yes, filing an ITR is mandatory for NRIs selling property in India, regardless of TDS deduction.
Can NRIs claim exemption on capital gains from property sales?
NRIs can claim exemptions under Sections 54 and 54EC of the Income Tax Act.
What is the TDS rate for NRIs selling property in India?
The TDS rate is 20% for long-term capital gains and 30% for short-term capital gains.
Do NRIs need to pay Tax on property sales in India?
NRIs are liable to pay capital gains tax on selling property in India.
What is advisable for NRI property disputes between litigation, mediation and arbitration?
Mediation and arbitration are advisable as the first options for most NRI property disputes rather than jumping into litigation. They provide faster, cost-effective, and mutually agreeable resolutions while restoring conflicted parties’ relationships.
Is mediation suitable for all kinds of NRI property disputes?
While no dispute resolution process is ideal for all situations, mediation is particularly suitable for sensitive conflicts involving family members, inheritance issues, and other situations where preserving relationships is essential. Complex title disputes may be better suited for arbitration.
What are some judicial reforms undertaken to promote ADR mechanisms in property disputes?
Key judicial reforms include mandatory mediation referral for certain property disputes, training programs for mediators/arbitrators, litigant awareness programs, pre-litigation mediation mechanisms involving government agencies, and promoting arbitration through policies focused on infrastructure and timely resolution.