Sale of land and property in India – tax
consequences for non resident Indians
Non-resident Indians, whether Indian nationals or British nationals of Indian origin, if they are resident in the UK for tax purposes, are liable to UK tax on their worldwide income and/or gains, except in some very rare circumstances. Basically if you are resident in the UK, you will normally be taxed on the ‘arising’ basis. This means that you are liable to pay UK tax on your worldwide income and gains, wherever they arise or accrue. There is an alternative basis called ‘remittance basis’ which is an alternative tax treatment available to some people who are resident in the UK and who are either not domiciled in the UK or not ordinarily resident in the UK. But those who opt for remittance basis lose their entitlement to personal allowance for income tax purposes and annual exempt amount for capital gains tax purposes.
Often we are approached by potential clients seeking advice on Indian and UK tax consequences of a sale of property in India. Indian and UK tax treatments differ significantly when it comes to inheritance and gifts. We offer a range of tax services for non resident Indians in the UK particularly when it comes to people with multi-jurisdictional tax affairs. Our services include:
Advice
Advise on Indian tax consequences a transaction carried out in India Advise on other regulatory and compliance implications, Indian foreign exchange laws particularly
Advise on UK tax consequences of a transaction carried in India
Advise on a possible tax-efficient structure considering UK and Indian tax laws
Liaising with tax and other regulatory authorities
Prepare and file Indian tax returns
Liaise with Indian tax authorities on the client’s behalf in India
Liaise with other regulatory authorities (e.g. foreign exchange) in India
Prepare and file UK tax returns in the UK
Liaise with UK tax authorities (HMRC) on the client’s behalf in the UK
Help with the procedural part
Help open a bank account in India
Help obtain PAN (permanent account number) card in India
Help with any approvals required in India for overseas money transfers
Issue Chartered Accountant’s certificates where required
Draft agreements, deeds and complete other paperwork
Tax Partners
