Have a Tax Question? Ask a Tax Expert
I need a bit more information.
What is your status in the United States?
If you are a citizen of the United States, do you have special visa status in India?
I have to run to an appointment and will be back in a bit to finish this. i just do not want you waiting for an answer this moment.
You can file on line, but I need to direct you more.
I the mean time, you can look over this list of forms for income tax.
Most likely the language is Hindi or Punjabi....I would be surprised if it were something else.
capital gains on inheirted property that has been sold, is figured using the cost basis fo the person from whom you inherited it. So your cost, in figuring capital gains the cost of the person from whom you inheritted the property.
However, If the property was first acquired by the previous owner before April 1, 1981, then the Fair Market Value (market price) is used.
If the FMV on that date is higher or lower than the original cost? Then the higher figure is taken into account.
If you inherited a share an dsold a share of hte property, then you would only be lible for your share of the tax.
Before I go further, I need to know something boaut your tax bill and the shares.
To me, it sounds like someone has already calculated the capital gains and determined your share of the tax is 20%. Is this right?
Who else did you inherit the property from and sell the property wiht. Are you one of 5 or six people? or one of two people, etc?
If it is true that someone has already calculated the tax, are they really just asking you to relaese your share of payment to them to pay it for you. (like pooling the money) or are they asking you to figure your own capital gains and pay the government directly?
I do know you have to pay capital gains on the sell of this property as I described.
the tax rate will be 5 percent, 15 percent and 25 percent (and can be a combination)
letting me see the document may help. However we have a policy here of not contacting the customers directly outside this venue.
there is a tool in the tool bar, the tree icon, that will allow you to upload an image. You have to scan it and upload it here. Or, you can scan it and upload it to a shared website and provide me a link.
For example: https://www.google.com/accounts/ServiceLogin?service=writely&passive=true&continue=http%3A%2F%2Fdocs.google.com%2F&followup=http%3A%2F%2Fdocs.google.com%2F<mpl=homepage&nui=1&rm=false
if you can upload the document, i may be able to recognize its form and interpret it somewhat.
it may also be helpful to have a full translation of the document. (I think you ment the language to be Marathi)
YOu may find a local source, in the mean time here are a few internet sources:
Only that it really sounds to me like you are being asked to pay your share of the capital gains tax and that you really may not have to file anyother document.
You can post the synopsis here. I believe we have 72 hours. Since we opened the discussion on this, and it is a continuation of my request tosee the document, you can still post here. Just make sure you extend the time as needed. If the question expires, then you may have to post another question.
You do not have to pay again, but bonuses are always welcome.
Ok so here is my summary of all the legaleze and my experience with the indian community with these kinds of issues.
this is merely legal advice, that says that the tax officer representing the governmentn will have to determine the taxability and taxes on this property.
he is saying, and I concur, that you can avoid the capital gains all together if you deposit the proceeds into an account in India, and reinvest it within three years from the sale date.
they are using the FMV index that I mentioned before from 1981.
the deposit to a rupee account shelters you from attempting to expatriate the funds before taxes are determined or you reinvest the money; there by avoiding taxes all together.
In either case you have to file the documents requesting an income tax assessment sometime before 30 June this year.
The 20% they are quoting is an estimate. You would leave that money in an account until the Indian government tax representative figured the tax; you would use the account to pay the tax, and any left over would be yours to keep.
I will look up the forms for you.
But my recommendation, is to have the person who sent you the letter, to do them for you. it is much easier to have them do it, because they are on the ground in India.
YOu would use the remainder to invest in a business.
I apologize for taking so long to get back to you. It has been awhile and i am not sure of all of your qualificationso for exemptions.
So I am figuring you have to sue one of these three forms.
You will need to check with your contact on the ground in India to make sure you have the right one.