Dear client,

In case of U.S. a person has to pay tax on income earn from foreign sources. If the income is beyond exception limit then you have to pay the tax as per tax slab in U.S. Fo the year 2020 the limit is  $107,600.

Thank You.

The Income-tax Act provides that the exemption u/s 54 may be availed by the non-resident on the capital gains from sale of house property in India through purchase of another house in India to the extent of the amount invested.

2) In alternative you can buy certain government notified bonds (NHAI and REC bonds to the extent of Rs 50 lakh) to reduce the burden of capital gains tax.

3)An NRI can sell residential/commercial property in India to a person resident in India an NRI or a PIO. However, a PIO can sell residential/commercial property in India only to a resident of India. He would need prior approval of the RBI for sale of residential/commercial property in India to an NRI or a PIO.

Yes you can sell the property to him

You can sell your immovable property in India to a resident or foreign citizen. 

The tax will be deducted @21% of the total sale consideration amount towards long term capital gains. 

Actually the taxes would be applicable to the extent of capital gains alone hence you can claim refund of excess money deducted through your chartered accountant. 

You can take care of US tax on this income by filing form D in that country and by complying with other formalities to claim exemption in view of the taxes already suffered in India. 

Since property is being sold in india better take sale consideration in india and pay long term capital gains tax 

2) TDS has to be deducted by buyer at 22 per cent 

3) as far as US laws are concerned consult a lawyer in US 

1. As the property is in India, upon its sale, the tax liability will also arise in India only and not in the US

2. The buyer has to compulsorily deduct TDS from the sale price and pay the balance to you 

3. If you are entitled to any refund from the TDS paid by the buyer to the government, then you will have to file your income tax returns in India and claim the refund 

4. The sale price cannot be spilt in 25:75 ratios to lower the tax liability in India. Whether you receive partial payment in India and balance in the US, still the full capital gains tax will have to be paid in India only. However as before stated if you are entitled to refund of tax then you can always claim that by filing your income tax returns in India 

5. If proper tax is paid in India then there is no need to pay any additional tax in the USA as India and USA are signatories to a double taxation avoidance agreement 

6. I would advise that you should not take the money from the son of the buyer and should take money only from the buyer directly. However if the son is granted a POA by the buyer then he can pay you subject to he also paying the applicable TDS to the Indian government and providing you with the TDS certificate evincing such payment. If the POA is not possible then the son can remit the funds to his father who in turn can then directly pay you. The money received by the father from his son will not  be taxable in the hands of the father as that will  be considered as an exempt income, being a gift from son to father 

7. You can sell the property to the son even if he is a US citizen provided the property being sold is not an agricultural land against which there is a prohibition. 

After selling the property, you need to get 2 certificates from a Chartered Accountant in India if you are sending the proceeds outside the country. These certificates are Form 15A Declaration of Remitter and Form 15CB Certificate of an Accountant. You need these forms to verify that your money is from legal sources and that all taxes have been paid.

As a general rule, you can transfer a maximum for $1 million from your NRO to a US account in a financial year, which is from April to March in India.

If you are a US resident alien, you need to declare Capital Gains on Losses on the sale of your property in India under Section D of Form 1040. You can deduct the amount paid for gains tax paid in India to the capital gains tax owed to the US government since the two countries have a Double Taxation Avoidance Agreement.  

If you did not pay capital gains tax in India because you reinvested the proceeds, you will still be liable for the full amount of the capital gains tax due in the US if you are a US resident. 

Dear Client,

Every country has its unique set of tax slab and as per Double tax avoidance agreement for same thing tax cannot be charged at both places. And India and USA signed this agreement. 

1.) in case of Immovable property the domestic law where the contract done is applied.

2. You have to pay tax as per Indian tax slab as sale happened in India of an land under Indian territory.

Thank You.

1. If you pay the same in US then you can take benefit of double taxation avoidance agreement DTAA in US