Question ID : 36866

Capital Gain

An NRI who is serving in Kuwait for last twe;ve Years appx has sold Residential Flat in India and after Indexation capital gain of around 35 Lacs is earned. In Kuwait he is earning Tax free Salary (There is No income Tax there) On Purchase from NRI Buyer has to deduct TDS @20.8%. Whether he should invest in Capital Bonds/Residential property to avoid Capital Gain Tax or there is any other wayout. I have heard some Income Tax Authority can issue Certificate of No deduction/short deduction.Whether Such Authority is in all cities or Some centralised Department in Delhi etc

NRI can invest in capital gain bond or in residential property and claim exemption under section 54. For no deduction/short deduction of tax, Form 13 can be filed with jurisdictional AO. In regions like Mumbai, Karnataka and Tamil Nadu, it can be filed online.