Understanding Indexation in Real Estate Indexation is a critical concept in the Indian real estate market, particularly when it comes to calculating capital gains tax on the sale of property. It allows property sellers to adjust the purchase price of their asset for inflation, effectively reducing the taxable gains. What is Indexation? Definition of Indexation Indexation is a tax...
August 2024
Introduction to Capital Gains in Real Estate In the real estate industry, capital gains tax is a crucial factor that can significantly impact your investment returns. With the introduction of the new tax regime in India, it’s essential for property owners and investors to understand how short-term and long-term capital gains are taxed. What Are Capital Gains in Real Estate? Definition of...
Understanding TDS on Rental Income in India In India, Tax Deducted at Source (TDS) is a significant aspect of tax compliance for property owners earning rental income. This blog post will explore the rules and regulations surrounding TDS on rental income, helping property owners and tenants understand their obligations under Indian tax laws. What is TDS on Rental Income? Definition and...
What Are Indexation Benefits in Capital Gains? Indexation benefits are a crucial aspect of capital gains taxation in India, particularly for real estate investors. They allow taxpayers to adjust the purchase price of their property to account for inflation, thereby reducing the taxable capital gains. How Does Indexation Work in Real Estate? Adjusting for Inflation Indexation involves...
Understanding NRI Tax Obligations in India Non-Resident Indians (NRIs) often invest in Indian real estate, attracted by the potential for rental income and capital appreciation. However, one common question is whether NRIs are required to pay taxes on the rental income and capital gains they earn from these properties. Taxation of Rental Income for NRIs Is Rental Income Taxable in...
Understanding NRI Taxation in India As a Non-Resident Indian (NRI), you may assume that your tax obligations are limited to the country where you reside. However, if your income in India surpasses certain thresholds, you could be taxed as an Indian resident. It’s crucial to understand these rules to ensure compliance and avoid any legal hassles. When NRIs are Taxed as Indian...