Long-Term Capital Gains Tax for NRIs - Expert Guide by NoBroker

NoBroker helps NRIs navigate long-term capital gains tax on property sales, covering tax rates, exemptions, and seamless filing for hassle-free compliance.

banner image

    Are you a

    Estimated time of call

    Expect a call from us at undefined

    NRI Long-Term Capital Gains Tax Services

    Understanding long-term capital gain tax for non-resident Indians (NRIs) is crucial for those making investments in India. NRIs need to optimize their tax liability while also adhering to India's tax regulations when selling equities, mutual funds, or real estate.

    Long-Term Capital Gains Tax Filing for NRIs in India

    Rental Agreement >

    Inspection Plan >

    Legal Assistance >

    NRI Tax Filing >

    Planning to sell property in India? We simplify long-term capital gains tax filing for NRIs, from drafting accurate sale agreements to managing TDS deductions and ensuring legal compliance. Get complete support under one roof, without needing to be in India.

    • Rental Agreement: Get legally valid rental documents delivered to your tenant’s doorstep.
    • Inspection Plan: Scheduled property inspections with detailed digital reports.
    • Legal Assistance: Resolve legal issues and complete paperwork smoothly.
    • NRI Tax Filing: Accurate and timely filing of LTCG and other NRI-related taxes.

    Testimonials

    profile
    BRAJESH KUMAR,UKicon
    full starfull starfull starfull starfull star

    5.0

    No broker is truly genie in the bottle when it comes to renting your apartment. I like to say thanks to my relationship manager & Field RMs who helped me close the deal. From tenant sourcing to finalizing the deal and preparing the final rent agreement, all was taken care by NoBroker

    profile
    NAVEEN SAHAY,USAicon
    full starfull starfull starfull starhalf star

    4.5

    Really happy with the service! NoBroker rented out my property in less than a month. The tenants were well screened. They complete the needed repairs quickly while being very proactive in communicating with me. They are always easy to get a hold of and attentive to all my questions.

    profile
    WAMAN RAYADURG,INDIAicon
    full starfull starfull starfull starfull star

    5.0

    NoBroker Property Management Team is very prompt and efficient. The best part is that I don't have to worry as they find the tenants quickly, collect the rent on time and take care of all the necessary documentation. NoBroker is doing a fantastic job in managing my properties.

    The asset type and holding time have an impact on the long-term capital gain tax rate for non-resident individuals. NRIs can also take advantage of exemptions under Indian tax legislation with careful tax planning, especially through strategic LTCG reinvestment.

    What is the Long-Term Capital Gain Tax for NRIs?

    Long-term capital gain (LTCG) tax applies when an NRI sells an asset after holding it for a specified period, as per Indian tax laws. LTCG taxation is more favourable than short-term capital gains (STCG) because of indexation benefits and lower tax rates.

    Key Holding Periods for LTCG Tax:

    Asset Type Long-Term Holding Period Long-Term Capital Gain Tax Rate for NRI
    Immovable Property (Real Estate) More than 2 years 20% (after indexation) + surcharge & cess
    Listed Equity Shares & Equity Mutual Funds More than 1 year 10% (above ₹1 lakh gain, no indexation)
    Debt Mutual Funds & Other Capital Assets More than 3 years 20% (after indexation) + surcharge & cess

    Long-Term Capital Gain Tax on Property for NRIs

    Long-term capital gain tax on property for NRIs applies when an NRI sells a residential or commercial property after two years of purchase, and it is taxed as per standard capital gain tax rules.

    LTCG Taxation on Property Sales:

    • Flat 20% tax rate (after indexation benefits).
    • TDS at 20% is deducted by the buyer before making payment to the NRI seller.
    • Exemptions are available under Sections 54, 54EC, and 54F.

    Example Calculation of Long-Term Capital Gain Tax for NRIs:

    • Purchase Price (2015): ₹80 lakh
    • Indexed Cost (2024, considering inflation adjustment): ₹1 crore
    • Sale Price (2024): ₹1.4 crore
    • Long-Term Capital Gain: ₹40 lakh
    • Tax Liability (20% of ₹40 lakh): ₹8 lakh + surcharge & cess

    Exemptions for LTCG on Property for NRIs

    Section 54 (Reinvestment in Residential Property)

    NRIs can reinvest in another property in India within 2 years of sale (or construct a house within 3 years). Full exemption is allowed if the new property purchase price is equal to or more than the LTCG amount. This provision is useful for reducing Long-Term Capital Gain Tax for NRIs on the sale of real estate.

    Section 54EC (Investment in Capital Gains Bonds)

    NRIs can invest up to ₹50 lakh in NHAI or REC bonds within 6 months of the sale. The lock-in period is 5 years.

    Section 54F (Exemption for Sale of Other Assets)

    If an NRI sells any long-term asset (except a house) and reinvests in residential property, the full exemption applies.

    Long-Term Capital Gain Tax on Shares in India for NRIs

    NRIs investing in Indian equity markets must pay long-term capital gain tax India NRI when they sell stocks or equity mutual funds after one year of holding.

    LTCG Taxation on Shares & Mutual Funds

    • Flat 10% tax rate on gains exceeding ₹1 lakh.
    • No indexation benefits for LTCG on shares.
    • TDS at 10% is deducted before crediting sale proceeds to the NRI’s account.

    Example for LTCG tax Calculation

    • Purchase Price (2021): ₹5 lakh
    • Sale Price (2024): ₹8.5 lakh
    • Long-Term Capital Gain: ₹3.5 lakh
    • Tax Liability (10% on ₹2.5 lakh after ₹1 lakh exemption): ₹25,000 + surcharge & cess

    How NoBroker Can Help NRIs with Long-Term Capital Gain Taxation?

    • Expert Tax Consultation: Our tax professionals guide NRIs on the long-term capital gain tax rate for NRIs and exemptions.
    • TDS Refund Assistance: We help NRIs claim refunds on excess TDS deducted on property or share transactions.
    • DTAA & Tax Planning: We assist NRIs in benefiting from Double Taxation Avoidance Agreements (DTAA) to reduce tax burdens.
    • Capital Gains Tax Calculation & Filing: Our experts calculate LTCG tax accurately, apply for exemptions, and handle ITR filing.
    • Investment Guidance for Tax Savings: We provide strategies to reduce LTCG tax liabilities, including reinvestments and exemption planning.

    Stock market participants and real estate investors must understand the long-term capital gain tax in India as NRIs. Planning can assist in reducing tax obligations because LTCG tax rates are lower than STCG tax rates.

    NRIs can ensure compliance and improve tax savings with NoBroker's professional tax filing services. Tax filing is made simple with our end-to-end service, whether you're dealing with LTCG on shares or LTCG on real estate for NRIs.

    Get in touch with NoBroker right now for assistance with long-term capital gain tax for NRIs!

    Frequently Asked Question's

    Long-term capital gains tax for NRIs is levied on profits from the sale of assets held for a specified period. The current LTCG tax rate is 12.5% plus surcharge and cess, and it is applied without indexation benefits.
    A property is considered to qualify for long-term capital gains if it is held for more than 2 years before being sold.
    For property sales after July 23, 2024, LTCG for NRIs in India is taxed at 12.5% plus surcharge and cess with a lower TDS certificate.
    Yes, NRIs can avail of exemptions under provisions such as Sections 54 and 54EC by reinvesting in residential property or specified bonds within the prescribed time.
    NRIs can reduce their long-term capital gains tax liability through indexation benefits, reinvestment options, deductions, and, where relevant, DTAA benefits.
    NoBroker helps NRIs calculate capital gains accurately, apply indexation where applicable, and identify eligible tax exemptions.
    Yes, NoBroker provides end-to-end NRI LTCG tax filing assistance, including documentation, ITR filing, and compliance.
    NoBroker is the leading choice for long-term capital gains tax guidance, making LTCG tax management simple with expert legal support, streamlined online processes, and end-to-end support from calculation to filing.

    Blogs