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Old 01-10-2007, 09:43 AM
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Default Capaital Gains Tax in India

Quote:
Originally Posted by andyk2 View Post
Hi Nick,

I´ve been looking at investments in India for my clients for almost a year. The Central bank of India records all monies coming in and only lets the same amount of money out. Therefore, if you make a profit - that has to stay in India!

I have asked several people if there is a way around this, and nobody has yet come up with a legal answer!

Please let me know if you have one

Thanks,

Andy
I got this from an agent who specialises in investment property in India

If you hold the property for less than 3 years it is 30% capital gains tax but if you hold after 3 years it is 10%.
Furthermore CGT is index linked to inflation so that for example you bought a property for 100 euros and sold it 4 years later for 200 euros and inflation was 25% during that time. That would mean your cost is recalculated from 100 euros to 125 euros. so that you pay CGT on 75 euros
If you sell a property and buy another within 6 months there is no CGT.
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