The Finance Minister recently reduced the customs duty on gold from 15% to 6%. Additionally, the holding period for long-term capital gains tax on gold has been shortened from 36 months to 24 months. The tax rate for long-term capital gains on gold has also been lowered from 20% with indexation to 12.5% without indexation. Shift to Gold-Related Instruments for Investment Market experts suggest that...
Real Estate
SGB Investors Disappointed by Budget 2024 Customs Duty Changes Many Sovereign Gold Bond (SGB) investors, particularly those whose investments matured on August 5, 2024, were left disappointed by the Budget 2024 announcement regarding customs duty on gold. The government reduced the customs duty on gold from 15% to 6%, leading to a drop in gold prices. This decline was influenced by both the reduction...
When selling property in India, Non-Resident Indians (NRIs) can significantly reduce their tax burden on capital gains by utilizing specific exemptions under the Income Tax Act. Here’s how NRIs can save on taxes by leveraging Section 54, Section 54EC, and Section 54F. Exemption Under Section 54: Reinvest in Residential Property Eligibility and Applicability:Section 54 provides an exemption from...
In property transactions involving a Non-Resident Indian (NRI), the buyer holds the responsibility of deducting the Tax Deducted at Source (TDS) from the sale proceeds and ensuring it is transferred to the NRI seller. This TDS deduction is a crucial step in complying with Indian tax laws. The Buyer’s Responsibility in TDS Deduction The buyer must deduct the applicable TDS amount from the payment...
When Non-Resident Indians (NRIs) sell property located in India, they are subject to taxes on the capital gains earned from the sale. These taxes are governed by specific rules under the Income Tax Act, and understanding the applicable Tax Deducted at Source (TDS) rates is crucial for a smooth transaction. Understanding TDS on Property Sales for NRIs TDS (Tax Deducted at Source) is a mandatory...
Overview of TDS on Property Transactions In India, whenever a property is bought or sold, Tax Deducted at Source (TDS) must be deducted by the buyer before making the payment to the seller. This deducted TDS amount must then be deposited with the Income Tax Department by the buyer. This rule equally applies to transactions involving Non-Resident Indians (NRIs). TDS Rate for Resident and Non-Resident...
Understanding TDS on Property Purchases from NRIs In India, when purchasing property from a Non-Resident Indian (NRI), the buyer is required to deduct Tax Deducted at Source (TDS) under Section 195 of the Income Tax Act. This TDS is a crucial component in property transactions involving NRIs. TDS Rates for Different Scenarios Long-Term Capital Gains (Property Held for More Than Two Years): The...
What is Fair Rent? Fair Rent refers to the rent determined by a rent officer or, on appeal, by a rent assessment committee under a regulated tenancy. This rent is then registered as the official amount that can be charged for a property, ensuring that tenants are not overcharged and landlords receive a reasonable return. Importance of Fair Rent in Regulated Tenancies In India, where housing...
What is Alternative User Value? Alternative User Value refers to the value of land or buildings based on a prospective use that differs from the current use. This concept is crucial in real estate, especially when assessing the potential for redevelopment or repurposing a property. Importance of Alternative User Value in Real Estate In the Indian context, where urbanization and development are...
In the realm of property ownership and real estate, nuisances can arise that affect neighbors or the surrounding community. When such issues occur, legal mechanisms are in place to address them. One such mechanism is the notice served on the owner(s) or occupier(s) of a property from which a private nuisance arises. This notice warns them of the intention to enter the land to abate the nuisance. Here’s...