NRIs are allowed to claim exemptions under section 54 and Section 54EC on long term capital gains from sale of house property in India.

2)you can save the tax on your long term capital gains by investing them in. Bonds issued by the National Highway Authority of India (NHAI) or Rural Electrification Corporation (REC) . These are redeemable after 3 years and must not be sold before the lapse of 3 years from the date of sale of the house property.

3)you must make these investments and show relevant proofs to the Buyer – to make sure TDS is not deducted on the capital gains. The NRI can also claim excess TDS deducted at the time of return filing and claim a refund.

you need to show buyer proof of investment in bonds to avoid TDS deduction

2)NRI can apply for Tax Exemption Certificate from Income Tax Department under section 195 of the income tax act, 1961.it is always advisable to apply for NIL Tax Deduction / Tax Exemption / Lower Tax Deduction Certificate.

3) If your country of residence has Double Taxation Avoidance Agreements (DTAA) with Indian government i.e. lower rate of TDS is allowed. NRI need to submit a tax residency certification from the country of his residence. it will certify that you are a tax paying resident in that country and that tax on this income is paid in that country, it ensure no tax leakage for either countries.

1. Yes, you can claim refund of the TDS already paid to the I.Tax department if can establish that your capital gain tax has got rebate for investing 54EC Bonds.

2. After paying the required I.Tax, you can take your money abroad only after taking leave from the Reserve Bank of India and also complying with all the terms of RBI set out in this regard.

1. Your capital gain is first established for which the TDS is required to be deducted and has been deducted.

2. Thereafter you can claim refund on acceptable ground and can not get waiver order for paying the I.Tax on the account of capital gain.

NRIs who are selling house property which is situated in India have to pay tax on the Capital Gains. The tax that is payable on the gains depends on whether it’s a short term or a long term capital gains.

Long term capital gains are taxed at 20% and short term gains shall be taxed at the applicable income tax slab rates for the NRI based on the total income which is taxable in India for the NRI.

When an NRI sells property, the buyer is liable to deduct TDS @ 20%. In case the property has been sold before 2 years(reduced from the date of purchase) a TDS of 30% shall be applicable.

NRIs are allowed to claim exemptions under section 54 and Section 54EC on long term capital gains from sale of house property in India.

If you can save the tax on your long term capital gains by investing them in certain bonds. Bonds issued by the National Highway Authority of India (NHAI) or Rural Electrification Corporation (REC) have been specified for this purpose. These are redeemable after 3 years and must not be sold before the lapse of 3 years from the date of sale of the house property. Note that you cannot claim this investment under any other deduction. You are allowed a period of 6 months to invest in these bonds – though to be able to claim this exemption, you will have to invest before the return filing date.

The NRI must make these investments and show relevant proofs to the Buyer – to make sure TDS is not deducted on the capital gains. The NRI can also claim excess TDS deducted at the time of return filing and claim a refund.

So, if I go with the option of investing in the bonds, do I still need to get a lower tax deduction certificate from my PAN jurisdiction so that TDS is not deducted before the sale deed?

NRI selling their properties can apply to the income tax authorities for a tax exemption certificate under section 195 of the Income Tax Act. They must make this application in the same jurisdiction that their PAN belongs to and will be required to show proof of reinvestment of capital gains.

The NRI must make these investments and show relevant proofs to the Buyer – to make sure TDS is not deducted on the capital gains. The NRI can also claim excess TDS deducted at the time of return filing and claim a refund.

General permission is available to NRIs and PIOs to repatriate the sale proceeds of property inherited from an Indian resident, subject to certain conditions. If those conditions are fulfilled, the NRI need not seek the RBI's permission. However, if the NRI has inherited the property from a person residing outside India, he or she must seek specific permission from the RBI.