1. Service Title
Capital Gains Tax on Property in India: Strategic Tax Planning and Compliance for NRIs
in the US & UK

2. Short Authority Introduction
At Finnotive Advisory Solutions (FAS), we recognize that selling property in India from the
United States or the United Kingdom is a significant financial event that requires meticulous
oversight. Our NRI taxation practice is led by Lakshman Kumar G (FCA), a Fellow Chartered
Accountant and member of the Institute of Chartered Accountants of India (ICAI) with over 12
years of experience in international taxation and cross-border advisory. Having previously
served at global firms including Deloitte, Grant Thornton, and BDO, our leadership brings
institutional-grade quality control and a structured approach to property transactions.
Established on July 10, 2018, FAS is committed to high standards of integrity and provides 24/7
customer support to bridge the time-zone gap for our international clientele.

3. Who This Service Is For
Our capital gains advisory is specifically designed for Non-Resident Indians who are:
● Selling Residential or Commercial Real Estate: Navigating the tax implications of
selling apartments, villas, or office spaces in Indian metros.

● Handling Inherited Properties: Determining the correct cost-basis and indexation for
properties passed down through generations.

● Planning Repatriation: NRIs who need to move the sale proceeds from an Indian NRO
account to their bank accounts in the US or UK.

● Seeking Tax Exemptions: Individuals looking to reinvest sale proceeds into specified
assets (Section 54EC bonds or new residential property) to minimize their tax liability in
India.

4. Technical Overview of the Law
As a Chartered Accountant-led firm, FAS ensures that every transaction is audited against the
relevant sections of the Income Tax Act, 1961, and FEMA regulations.
Section 195: Tax Deducted at Source (TDS)

For an NRI seller, the buyer is legally mandated under Section 195 to deduct tax at the source.
Unlike domestic transactions, there is no minimum threshold; tax is deducted at the “rates in
force” (typically 20% plus surcharge and cess for long-term gains). Without professional
intervention, the buyer often deducts tax on the total sale value rather than the actual profit,
leading to a significant blockage of your capital.

Section 197: Lower TDS Certificate (Form 13)

To protect your liquidity, we specialize in obtaining a Lower TDS Certificate by filing Form 13
with the Income Tax Department. This allows the Assessing Officer to authorize the buyer to
deduct tax only on the estimated capital gains, effectively saving you from waiting months for a
tax refund.
Capital Gains Categorization & Indexation
● Long-Term Capital Gains (LTCG): Applicable for properties held for more than 24
months. We apply the Cost Inflation Index (CII) to adjust your purchase price for
inflation, significantly reducing the taxable gain.

● Short-Term Capital Gains (STCG): Applicable for properties held for 24 months or less,
taxed at the marginal slab rates.

Exemptions under Section 54 and 54EC
We provide Saving Strategies to help you reinvest gains into a new residential property
(Section 54) or Capital Gains Bonds (Section 54EC) to legally reduce or eliminate your tax
outgo.
15CA & 15CB: The Remittance Gateway
Repatriating funds to the US or UK requires a Chartered Accountant’s certificate in Form
15CB, alongside a self-declaration in Form 15CA. FAS provides the necessary audit-level
certification to ensure your bank processes the transfer without delay.
DTAA Relief and ITR Filing
Under the Double Taxation Avoidance Agreement (DTAA) between India and the US/UK, we
help you claim Foreign Tax Credits in your country of residence for taxes paid in India. This is
finalized during the filing of ITR-2, ensuring you are not taxed twice on the same income.
5. Common Compliance Mistakes NRIs Make

● Accepting Flat 20% TDS: Many NRIs lose liquidity by allowing the buyer to deduct tax
on the full sale price instead of the gains.

● FEMA Violations: Attempting to receive sale proceeds in an NRE account instead of an
NRO account, which can lead to penalties from the RBI.

● Incorrect Fair Market Value (FMV): For properties acquired before 2001, using an
incorrect FMV can result in an inaccurate tax computation and future notices.

● Ignoring Surcharge and Cess: NRIs often overlook that the effective tax rate is higher
than 20% due to mandatory surcharges on high-value transactions.

6. Step-by-Step Process We Follow
1. Computation & Strategy: We calculate the exact Long-Term Capital Gain after applying
indexation and identifying exemption opportunities.

2. Form 13 Procurement: We represent you before the Tax Department to secure a
Lower TDS Certificate before the sale deed is signed.

3. Documentation Oversight: We review the draft sale agreement to ensure tax clauses
are correctly drafted to protect the seller.

4. Repatriation Audit: We issue the 15CB certificate after verifying that all taxes have
been paid, facilitating the outward remittance of funds.

5. Annual Filing: We file your Income Tax Return (ITR) to reconcile all taxes and close
the transaction with the Tax Department.

7. Documentation Required
● Original Purchase Deed (and Sale Agreement for the current transaction).
● Invoices for property improvements or renovations (to increase the cost-basis).
● Passport copies to verify residency status and time spent in India.
● NRO Bank account statements.
● Tax Residency Certificate (TRC) from the US (IRS) or UK (HMRC).
8. Why Professional CA Certification Matters
In India, only a Chartered Accountant registered with the ICAI is authorized to file Audit
Reports and statutory certifications like Form 15CB. Entrusting your property sale to a CA firm
like FAS provides:
● Regulatory Excellence: Ensuring all filings meet high standards of integrity and quality
control.
● Risk Mitigation: Protecting you from future disputes, penalties, and scrutiny from the
Income Tax Department.
● Financial Accuracy: Ensuring every rupee of indexation and tax credit is claimed
correctly through expert Tax Planning.

9. Why Choose Finnotive Advisory Solutions (FAS)?
● Pedigree and Experience: Our partners, Lakshman Kumar G (FCA) and Ravuri
Durga Karthik (CMA), bring 12+ years of experience from global firms like Deloitte,
Grant Thornton, and BDO.

● Specialized Team: We are supported by a professional team of two CAs, one CMA, and
ten article assistants dedicated to Quality Control.

● 24/7 Global Support: We provide reliable 24/7 customer support to assist you with all
your tax-related queries, regardless of your time zone in the US or UK.

● Structured Advisory: From Business Strategy to Tax Management, we help you
manage your Indian finances with confidence and sustainable growth.

● Proven Integrity: Since our founding in 2018, we have maintained high standards of
professionalism in every audit and advisory project.

10. Strong Professional Call To Action
Selling an Indian property involves complex legalities and high financial stakes. Do not let
improper tax withholding or compliance errors diminish your hard-earned wealth.
Book a Consultation with an FAS NRI Tax Expert today. Ensure your capital gains are
managed with Big 4-level precision and your funds are repatriated safely.
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