NRIs are entitled to claim exemption from the tax if they reinvest long term capital gains /net sale consideration into
following assets.
|
CAPITAL
GAINS FROM
|
REINVESTMENT
IN
|
CONDITIONS
|
AMOUNT
EXEMPTED
|
RATE
OF INTEREST
|
|
Long Term Capital Asset Being
Residential House
|
Two Residential Houses in India*.
|
There are many conditions, which shall be provided on request**.
|
Minimum of:
a. Amount reinvested.
b. Long Term Capital Gains
|
Not Applicable.
|
|
Tax Saving Bonds issued by:
a. National Highways Authority
of India (NHAI) – (as per recent notification, NHAI bonds have been discontinued from
April 1, 2022)
b. Rural Electrification
Corporation Ltd. (RECL).
c. Power Finance Corporation
Limited
d. Indian Railway Finance Corporation Limited
e. Bonds as may be notified by
the Central
d. Government.
|
a. Investment
is to be made within 6 months from the date of transfer of asset.
b. Bonds are
to be held for a period of 5 years.
|
Maximum exemption cannot be greater than Rs. 50 lakhs by reinvestment
in such bonds.
|
Approx. 6% payable annually on the Tax savings Bonds.
The said interest shall be taxable in India
|
|
Any Long Term Capital Asset
|
Units of such funds as may be notified by the Central Government.
|
a. Investment
is to be made within 6 months from the date of transfer of asset.
b. Units are
to be held for a period of 3 years.
|
Maximum exemption cannot be greater than Rs. 50 lakhs by reinvestment
in such units.
|
To be notified.
|
|
Any Long-Term Capital Asset Other Than Residential House
|
Entire Sale Proceeds in the Residential House in India.
|
There are many conditions, which shall be evaluated.
|
Long Term Capital Gains in proportion of amount re- invested over Net Sale
consideration.
|
Not Applicable.
|
Note: The
above conditions have been provided briefly for your easy reference. There may
be several additional conditions applicable which shall be provided separately
on your request.
* The Finance Act, 2019 has extended the
benefit of exemption from levy of capital gains by investing the said capital
gains in one residential house to two residential houses in India. So, the
Government has extended the said benefit of re-investment to two residential
properties, effective from Financial Year 2019-20.
** The benefit of two residential houses can
be availed, at the option of the person only once in his lifetime and only when
the capital gains amount does not exceed Rs.2 crore. The case study explaining
the said amendment is covered in the ensuing paragraph.