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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.

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

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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.

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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 Questions

What is NoBroker End to End Property Management Plan?

NoBroker's End to End property management is a unique plan crafted to cater to customers looking for a reliable team to manage their property. The plan provides a dedicated property manager who helps you manage your property seamlessly and remotely without any hassle. The plan includes end to end services - Verified tenant search, Rental Agreement, On-time rent collection and transfer, Periodic Home Inspection, Seamless tenant move-in and move-out, home maintenance repair services.

How do I keep in touch with NoBroker while managing my property?

Once we start managing your property, you can always reach out to your dedicated relationship manager on call or via NoBroker App in case you have any query.

How do I get the monthly rent for my property?

The rent is collected by NoBroker from the tenant and is transferred to your registered bank account. You can track the same in your NoBroker app.

I already have a tenant residing at my property. Can NoBroker manage my property?

Yes. NoBroker team can manage your property. We will verify the current tenant background post owner's confirmation and get the rental agreement signed, if required. We will ensure periodic home inspection is conducted and in case the existing tenant vacates, we will initiate the tenant search for you free of cost.

What is home inspection and why is it required?

NoBroker's certified professional conducts a thorough inspection of your property to capture the current status of the property including a detailed inventory list before the tenant moves-in, during his stay at the property and post he vacates the property. A detailed inspection report is shared with you for every inspection and is explained to you in detail by your relationship manager. This way you are always updated about your property condition.

What if the tenant found by NoBroker vacates the property?

In case the tenant decides to vacate the property, we immediately start tenant search (free of cost) for your property. Once the old tenant vacates the property, we conduct a thorough home inspection of the property and compare with the pre-move-in report to ensure required repair, painting, cleaning or maintenance work is done and adjusted from the tenant's security deposit.