The LTCG is taxable at 20% plus surcharge

I’m an NRI and may inherit some properties in India. What is the method of promoting the properties and can there be any tax liabilities? Are there any authorized methods to reduce such tax liabilities? Do I want a PAN and Aadhaar card for the transaction? —Name withheld on request Under the revenue tax legislation, the worth of any asset obtained beneath a will or by means of inheritance is just not taxable in India. However, the revenue arising from the switch or use of inh-erited property will likely be taxable. The sale of immovable property will likely be taxable in India within the yr of sale. Any immovable property held for a interval of greater than 24 months is assessed as a long-term capital asset (LTCA). For inherited property, the holding interval can be calculated from the date of acquisition by the unique proprietor. If the property was acquired by the unique proprietor previous to 1 April 2001, the associated fee might be substituted with truthful market worth (however not exceeding the stamp responsibility worth on 1 April 2001), if such truthful market worth is greater than the unique value. The long-term capital achieve (LTCG) is taxable at 20% plus relevant surcharge and well being and schooling cess. The LTCG from the sale of residential property might be claimed as exempt from revenue tax to the extent there’s reinvestment in India in specified bonds (inside six months from the date of switch) or one residential home in India (to be both bought inside one yr earlier than or two years after or constructed inside three years of switch of the LTCA). Also, there’s a one-time choice to put money into two homes in India if the LTCG doesn’t exceed ₹2 crore. If the LTCG stays uninvested until the due date of submitting of tax return, it’s possible you’ll deposit the quantity in a capital achieve account scheme and subsequently withdraw this quantity for reinvestment in a brand new residential home throughout the stipulated interval. If the complete quantity is just not reinvested or not deposited within the scheme, the remaining portion of the LTCG will likely be taxable. To file the ITR and for the customer to deduct TDS, you may be required to acquire PAN. Sonu Iyer is tax companion and folks advisory providers chief, EY India. Queries at mintmoney@livemint.com Subscribe to Mint Newsletters * Enter a sound e mail * Thank you for subscribing to our e-newsletter.