How to reduce capital gains tax when you sell property in India?
If you are living outside of India as an NRI, and are looking to sell your property in India, there are some rules that go along with it. If you hold an immovable home in India that is not a farm or farm house that you got by inheriting it, it can be sold to both Indian residents as well as NRIs. If you have a farm or farm house that you received by inheriting it, then you cannot sell it to an NRI, only Indian residents.
There are ways to reduce the amount of taxes that you have to pay. One way would be that you use the profits you gain by selling your property and invest it into a new property that you would like to buy or build. You would have to purchase the new property within a few years for you to qualify for your tax exemptions.
When you are preparing to sell in India, be sure that you find a legit property dealer as there are a lot of frauds out there now.
How to get the money from your property in India?
If you bought the property when you were an Indian resident with Indian Rupees, then you will need to put all of the profit into your NRO account for accessing as an NRI. If you bought the property after you were already living abroad, then you can get the money in your country. Also, if you paid for the property using your NRE account, you can put the money you get from selling it back into your NRE account.