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Short-Term Capital Gains Tax for NRIs

NoBroker simplifies short-term capital gains tax for NRIs, covering applicable tax rates, filing process, and expert advisory for hassle-free compliance.

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    NRI Short-Term Capital Gains Tax Services

    Profits from the sale of capital assets, such as stocks, mutual funds, and real estate, are subject to capital gain tax. Under the Income Tax Act of 1961, NRIs are subject to several taxation regulations, including those related to short-term capital gains for NRI taxpayers.

    Short-Term Capital Gains Tax Filing Made Simple for NRIs in India

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    Need help with short-term capital gains tax on property sales in India? Our expert team provides end-to-end support, drafting sale agreements, calculating accurate TDS, and ensuring full legal compliance. Everything you need, handled remotely.

    • Rental Agreement: Legally binding agreements created and delivered to your tenant’s address.
    • Inspection Plan: Timely inspections with photo reports to keep your property secure.
    • Legal Assistance: Get help with disputes, documentation, and compliance.
    • NRI Tax Filing: Simplified filing for all NRI-related taxes, including STCG.

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    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.

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    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.

    NRIs only pay taxes on capital gains on assets that are situated in India. Tax is deducted at source (TDS) when an NRI sells real estate or stock in India. Whether the gain is short-term or long-term determines the appropriate capital gain tax rate for NRIs in India.

    What is Short-Term Capital Gain Tax for NRIs?

    Short-term capital gain (STCG) tax is levied when an asset is sold within a specified period after purchase. The tax liability depends on the asset type and the duration of holding before the sale.

    Key Holding Periods for STCG Tax:

    Asset Type Short-Term Holding Period Short Term Capital Gain Tax Rate for NRI
    Immovable Property (Real Estate) Less than 2 years As per the applicable NRI income tax slab
    Listed Equity Shares & Equity Mutual Funds Less than 1 year 15% (plus surcharge & cess)
    Debt Mutual Funds & Other Capital Assets Less than 3 years As per the applicable NRI income tax slab

    Short-Term Capital Gain Tax on Property for NRIs

    NRI Short-term capital gain tax on property applies when an NRI sells a residential or commercial property within two years of purchase, and it is taxed under standard capital gain tax rules.

    Taxation on Property Sales:

    • STCG is added to the NRI’s total income and taxed as per the short-term capital gain slab rate applicable.
    • TDS at 30% is deducted by the buyer before transferring the proceeds.
    • No indexation benefits apply for STCG, making it less tax-efficient compared to LTCG.

    Example Calculation for Short-Term Capital Gain Tax:

    • Purchase Price: ₹80 lakh
    • Sale Price (within 1.5 years): ₹1 crore
    • Short-Term Capital Gain: ₹20 lakh
    • Tax Liability (Assuming 30% slab): ₹6 lakhs + applicable surcharge & cess

    Optimization Strategies for NRI Short-Term Capital Gain Tax

    • Reinvestment Strategies: Unlike LTCG, STCG on property does not offer reinvestment benefits under Section 54 or 54EC.
    • Tax Treaty Benefits: NRIs from countries with a Double Taxation Avoidance Agreement (DTAA) with India may get tax relief.
    • Claiming Refunds: If excess TDS is deducted, you can file tax returns and claim a refund of the NRI short-term capital gain tax in India

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

    NRIs investing in the Indian stock market or mutual funds must pay short-term capital gain tax on shares in India for NRI if they sell within one year of purchase.

    How to File Short-Term Capital Gain Tax for NRIs in India

    1. Determine taxable capital gains using an NRI short-term capital gain tax calculator.
    2. Check Applicable TDS Deductions (30% for property, 15% for shares).
    3. File the Correct Income Tax Return (ITR-2 or ITR-3).
    4. Claim DTAA Benefits if eligible.
    5. Claim Refund for Excess TDS if applicable.

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

    • Expert Tax Consultation: Our professionals guide NRIs on STGC tax rates and compliance.
    • TDS Refund Assistance: We help NRIs claim refunds on excess TDS.
    • DTAA & Tax Planning: We ensure NRIs benefit from DTAA agreements.
    • End-to-End Tax Filing Support: We handle tax calculations, documentation, and filing.
    • Capital Gains Tax Calculator: An easy-to-use tool to estimate short-term capital gains tax India for NRIs

    For NRIs who sell real estate or participate in the Indian stock market, understanding short-term capital gain tax is essential. With NoBroker's professional tax filing services, NRIs can maximize tax savings and ensure compliance.

    Get professional advice on short-term capital gain tax for NRIs by contacting NoBroker today!

    Frequently Asked Questions

    What is NoBroker End to End Property Management Plan?

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    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?

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    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?

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    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?

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    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?

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    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?

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    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.

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