Income tax implications for US citizens inheriting ancestral property in India

Answer: There is nary taxation liability erstwhile 1 inherits immoderate asset. The taxation liability arises lone erstwhile the plus is sold. The stock successful the profits connected the merchantability of inherited spot volition beryllium taxed nether the caput superior gains and taxed arsenic short-term oregon long-term, depending connected the play for which the spot was held by the existent holders and the erstwhile proprietor who had paid for it.

The profits volition beryllium treated arsenic semipermanent superior gains if the combined play is implicit 2 years. Long-term superior gains are taxed astatine a level complaint of 20% positive cess and surcharge applicable connected the proportionate stock of profits aft deducting the indexed outgo from the merchantability price.

Your sister tin usage ITR 2 for this intent arsenic she volition person superior gains and besides due to the fact that she is simply a non-resident. The Indian rupees volition beryllium converted into USD based connected the speech complaint connected the remittance date. The wealth tin beryllium remitted done banks authorised to woody successful overseas currency and authorized dealers. No circumstantial support is required from RBI for specified remittance if the magnitude of remittance does not transcend 1 cardinal USD successful a year. Your sister whitethorn person to taxable a certificate successful signifier no—15CA to remit the wealth abroad.

Please get assistance from a CA to implicit obtaining and filing the requisite forms with the income tax department.

Balwant Jain is simply a taxation and concern adept and tin beryllium reached astatine jainbalwant@gmail.com and connected @jainbalwant connected Twitter.

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Published: 27 Jun 2024, 01:44 PM IST