Wondering about
cess on NRI selling property
. When a Non-Resident Indian (NRI) sells property in India, they are subject to certain taxes, one of which is the Capital Gains Tax. Capital Gains Tax is levied on the profit earned from the sale of the property.
The profit is calculated as the difference between the selling price and the indexed cost of acquisition.
What is the Cess on NRI Selling Property?In addition to Capital Gains Tax, NRIs may also be liable to pay a tax called the "CESS." CESS stands for "Education Cess and Secondary and Higher Education Cess." These are additional taxes imposed by the Indian government to fund education initiatives in the country.
Education Cess was introduced in India in 2004 as a surcharge to support education programs, while Secondary and Higher Education Cess was introduced later in 2007 for the same purpose. These cesses are typically charged at a certain percentage of the total tax liability.
For NRIs selling property in India, the CESS is applicable on the Capital Gains Tax they are liable to pay. The rate of CESS may vary depending on the prevailing tax laws at the time of the property sale.
The exact amount of CESS payable would be calculated based on the Capital Gains Tax liability, and the applicable rate of Education Cess and Secondary and Higher Education Cess.
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cess on NRI selling property
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What is CESS on NRI Selling Property?
Rohan
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2024-05-16T21:44:50+00:00 2024-05-21T17:25:03+00:00Comment
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