LawLoveLegal

When Non-Resident Indians (NRIs) sell property in India, they are liable to pay capital gains tax under Indian law. However, taxation doesn’t end there — the gains may also be subject to tax in their country of residence such as the United States, the United Kingdom, or Singapore . This makes it essential to understand how Indian tax law, international tax treaties (DTAAs), and constitutional safeguards work together. 1. Statutory Framework Governing Property Sale and Capital Gains a. Income Tax Act, 1961 The taxation of property sale by NRIs in India is primarily governed by the Income Tax Act, 1961 . Section 45 : Imposes tax on capital gains arising from the transfer of a capital asset. Section 48 : Provides for indexation of the cost of acquisition to adjust for inflation. Section 195 : Mandates Tax Deducted at Source (TDS) on payments made to NRIs for property transactions. Section 90 : Grants relief from double taxation through the Double Taxation Avoidance ...

Foreign Portfolio Investors Resume Buying Streak in Indian Stock Market Foreign portfolio investors (FPIs) have once again emerged as net buyers in the Indian stock market, signaling renewed confidence in the country's economic outlook. Data from the National Securities Depository Limited (NSDL) indicates that FPIs purchased equities worth Rs 1,156 crore in India until May 3. Factors Driving FPI Sentiment The shift in FPI sentiment follows a brief period in April when geopolitical tensions in the Middle East led FPIs to become net sellers in Indian stocks. Despite being net buyers until mid-April, FPIs cumulatively sold stocks worth Rs 8,671 crore by the end of the month. "The market is currently at record highs, driven by a pre-election rally. Although not as robust as in the past, FPI activity is closely tied to changes in US bond yields. If US bond yields decline and the Indian economy and markets continue to perform well, FPIs are likely to become more aggressive buyers,...