How can a Singapore NRI claim a 100% tax exemption on capital gains after TDS has been deducted?
Answer depends on the actual capital gains amount. (Read details below)
Details:
Usually, when NRI sells an immovable property, approx rate of 15% (12.5% plus surcharge plus cess) is levied on the entire sales consideration.
But for the final tax payable, the rate of 15% is levied only on the actual capital gains.
Hence, in most cases, there can be substantial income tax refund.
This refund may or may not be 100% depending completely on the capital gains computed. (Hence my comment on the first line)
A real life example on google is this:
A real life example on google.
Similar is the case for income tax exemption for even capital gains in case of shares or mutual funds etc.
Hence we advise you that the refund will be based on the final computation.
——- Direct Tax Team
Entrecap Business Services
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