r2i forum

Hi,

I will be moving back to India in 2 weeks. I have a house in USA that I am planning to sell. The capital gains I get is less than 500K and will attract $0 taxes as per US taxes. Can anyone please help me to understand if I should pay taxes back in India if I take this income to India even though the income is taxed as $0 in US.

Also if rather than selling now, if I sell the house in US after 1 year while residing in India, what would be the taxes that I would be attracting in US and India?

Thanks in Advance for your help!

Regards,
Sri Meda

India doesn't tax foreign income if you are NRI for the financial year. That is clear. This year you won't be NRI, since you are going back to India in July, you won't be completing 182 days outside India.

However check whether you qualify for RNOR status, if so, your foreign income won't be taxed in India this year and may be next year too. Check this out:

http://www.livemint.com/Money/x3sSFj2EXcvzIRXg4dGDFL/You-may-not-be-an-NRI-but-may-be-an-RNOR.html


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msrivatsav;658506Hi,

I will be moving back to India in 2 weeks. I have a house in USA that I am planning to sell. The capital gains I get is less than 500K and will attract $0 taxes as per US taxes. Can anyone please help me to understand if I should pay taxes back in India if I take this income to India even though the income is taxed as $0 in US.

Also if rather than selling now, if I sell the house in US after 1 year while residing in India, what would be the taxes that I would be attracting in US and India?

Thanks in Advance for your help!

Regards,
Sri Meda

Whether you take it back to India or not take it back, it will be taxable ordinarily. As WD40 suggests check your RNOR status because that will make this income tax free in India.
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