Shares in an Indian company
\n\u2022 Debentures of an Indian public company
\n\u2022 Deposits with banks and Indian public companies
\n\u2022 Central Government securities
\n\u2022 NSC VI and VII issues<\/li>\n<\/ul>\nThe entire capital gain would be exempt if the entire of the net consideration is re-invested. However, if the price of recent asset purchased, falls short than the consideration, then the capital gain would be exempt proportionately, i.e.,<\/p>\n
Total Capital Gain \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0X\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Cost of New Asset<\/strong><\/p>\n—————————–<\/strong><\/p>\nTotal net consideration<\/strong><\/p>\nExemption=<\/p>\n
NOTE: The exemption\u00a0is\u00a0withdrawn if the new asset purchased is transferred or converted into money within a period\u00a0of three\u00a0years from the date of purchase. The NRI is eligible to withdraw the amount from the special provision, at any point of time and in such an event, the investment income and LTCG\u00a0shall be\u00a0charged to tax as per the standard\u00a0provisions of Income Tax\u00a0Act, 1962.<\/p>\n
![\"Tax-Planning-for-NRIs.\"](\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/10\/Tax-Planning-for-NRIs..jpg\")
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Just like resident individuals, the NRIs have been provided with the exemptions under section 54, section 54EC and section 54F on long-term capital gains, arising on account of sale of house property. The long-term capital gain is often invested under:<\/p>\n
\n\n\nSECTION<\/strong><\/span><\/td>\nASSET SOLD\/ TRANSFERRED<\/strong><\/span><\/td>\nASSET TO BE INVESTED IN<\/strong><\/span><\/td>\nTIME PERIOD FOR INVESTMENT<\/strong><\/span><\/td>\nQUANTUM OF EXEMPTION<\/strong><\/span><\/td>\n<\/tr>\n\n54<\/strong><\/td>\n| \u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 RESIDENTIAL HOUSE PROPERTY<\/p>\n \u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 HOLDING PERIOD OF 3 OR MORE YEARS<\/td>\n | <\/p>\n \u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 RESIDENTIAL HOUSE PROPERTY IN INDIA<\/td>\n | <\/p>\n <\/p>\n <\/p>\n \u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 WITHIN ONE YEAR BEFORE THE DATE OF TRANSFER OF ASSET.<\/p>\n \u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 PURCHASED AFTER 2 YEARS FROM THE DATE OF TRANSFER OF ASSET.<\/p>\n \u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 CONSTRUCTION WITHIN 3 YEARS FROM THE DATE OF TRANSFER OF ASSET.<\/p>\n \u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 THE NEW ASSET CANNOT BE SOLD OR TRANSFERRED BEFORE THE END OF 3 YEARS.<\/td>\n | \u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 WHERE THE ENTIRE CAPITAL GAIN HAS BEEN INVESTED FOR ACQUISITION OF NEW ASSET, THE FULL AMOUNT OF CAPITAL GAIN WOULD BE EXEMPTED.<\/p>\n \u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 WHERE PARTIAL CAPITAL GAIN HAS BEEN INVESTED, THE CAPITAL GAIN NOT ADJUSTED IN NEW ASSET, SHALL BE CHARGED TO LONG-TERM CAPITAL GAIN TAX.<\/td>\n<\/tr>\n | \n54F<\/strong><\/td>\n| \u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 CAPITAL ASSET OTHER THAN HOUSE PROPERTY<\/p>\n (NOTE: YOU SHOULD NOT OWN MORE THAN ONE RESIDENTIAL HOUSE PROPERTY AT THE TIME OF TRANSFER OF THE CAPITAL ASSET)<\/td>\n | \u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 TO CLAIM FULL EXEMPTION, ENTIRE SALE PROCEEDS SHOULD BE INVESTED IN NEW ASSET.<\/p>\n \u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 WHERE THE PARTIAL INVESTMENT HAS BEEN MADE, THE EXEMPTION WOULD BE:<\/p>\n COST OF THE NEW HOUSE X CAPITAL GAINS<\/p>\n SALE RECEIPTS<\/td>\n<\/tr>\n | \n54EC<\/strong><\/td>\n| \u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 CAPITAL ASSET BEING RESIDENTIAL HOUSE PROPERTY<\/td>\n | \u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 BONDS OF NATIONAL HIGHWAY AUTHORITY OF INDIA (NHAI) OR RURAL ELECTRIFICATION CORPORATION (REC)<\/td>\n | \u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 THE SAID INVESTMENT BE MADE WITHIN 6 MONTHS FROM THE DATE OF TRANSFER.<\/p>\n \u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 THE MAXIMUM AMOUNT OF INVESTMENT THAT CAN BE MADE IS RS. 50 LAKHS.<\/p>\n \u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 THE NEW ASSET CANNOT BE SOLD OR TRANSFERRED BEFORE THE END OF 3 YEARS.<\/td>\n | \u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 AMOUNT INVESTED OUT OF CAPITAL GAIN; OR<\/p>\n \u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 RS.50 LAKHS;<\/p>\n WHICHEVER IS LOWER<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \n- Relevant proofs should be shown to\u00a0the customer\u00a0so\u00a0no TDS is deducted by him.
\n\u2022 In case, the customer deducts TDS, advantage of these exemptions may be availed at the time of return filing by NRI and refund of such TDS may be claimed.<\/li>\n<\/ul>\n | | | | | | | | |
![\"Investment-Options-in-India-for-NRIs\"](\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/10\/Investment-Options-in-India-for-NRIs-v1.1-2.png\")
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