Property Sale Taxation · Panaji, Goa
Selling property in Goa? We handle capital gain computation, Section 50C stamp duty adjustments, TDS for buyers and sellers, NRI repatriation, and every exemption you qualify for.
Overview
When you sell immovable property in India, the transaction touches at least three areas of tax law simultaneously: capital gains under the Income Tax Act, TDS obligations for the buyer, and FEMA rules if either party is an NRI. Missing any one of these can result in a penalty, a refund delay, or blocked repatriation.
Section 50C requires capital gains to be computed on the stamp duty value if it exceeds the actual sale price — a trap many sellers overlook. Budget 2024 also changed the LTCG rate on property from 20%-with-indexation to 12.5%-without-indexation (with a transitional choice for pre-July 2024 acquisitions). Our property sale advisory and reinvestment exemptions services cover every angle.
What we cover
From circle rate analysis to Form 26QB and NRI lower TDS certificates — all under one roof.
Talk to our CA →Calculating the indexed or unindexed gain on the property, comparing Section 50C stamp duty value against actual consideration, and applying the correct tax rate — 12.5% LTCG or slab-rate STCG.
Where the sale price is below the circle rate, we compute gain on the stamp duty value and advise on whether to contest the valuation before the Assessing Officer under Section 50C(2).
Preparing and filing Form 26QB, ensuring the 1% TDS is deposited by the buyer within 30 days, and issuing Form 16B to the seller for ITR credit.
Advising buyers purchasing from NRIs, obtaining lower TDS certificates (Form 13) to restrict TDS to actual capital gains tax, and coordinating the TDS deposit and Form 27Q filing.
Identifying and claiming Section 54, 54F, and 54EC exemptions; opening a Capital Gains Account Scheme deposit before the ITR deadline to preserve the exemption while reinvestment is arranged.
Advising on the USD 1 million annual repatriation limit from NRO accounts, obtaining CA certificate (Form 15CB) and filing Form 15CA for the foreign remittance of sale proceeds.
Our process
We review the circle rate vs agreed price, holding period, indexation benefit, and available exemptions before you sign.
We advise the buyer on TDS obligations and, for NRI sellers, prepare the lower TDS certificate application (Form 13).
We identify reinvestment options and, if needed, open a Capital Gains Account Scheme deposit to protect the exemption.
We file ITR-2 with Schedule CG, claim TDS credit, and handle Form 15CA/15CB for NRI repatriation of sale proceeds.
Frequently asked questions
Capital gain = Full Value of Consideration (sale price or stamp duty value, whichever is higher under Section 50C) minus Indexed Cost of Acquisition minus Indexed Cost of Improvement minus Transfer Expenses. If held more than 24 months, the gain is long-term. Budget 2024 replaced the 20%-with-indexation rate with 12.5%-without-indexation for acquisitions on or after 23 July 2024, with a choice of the better rate for earlier acquisitions.
Section 50C deems the stamp duty value (circle rate) as the full value of consideration if the actual sale price is lower. The seller pays capital gains tax on the higher stamp duty value even if they received less cash. If the difference is within 10% (i.e., actual consideration is at least 90% of stamp duty value), the actual price is used. Sellers should compare the agreed price to the circle rate before finalising a transaction.
A resident buyer of immovable property costing ₹50 lakh or more must deduct 1% TDS on the full consideration and deposit it via Form 26QB within 30 days from month-end. No TAN is required. The seller can credit this TDS against their income tax return. Failure by the buyer to deduct or deposit TDS attracts interest and penalty.
Under Section 195, the buyer must deduct TDS at 20% (LTCG) or 30% (STCG) plus surcharge and cess on the gross sale proceeds — not just the net gain. This can significantly exceed the actual tax liability. The NRI should apply for a lower TDS certificate (Form 13) well before the registration date so deduction is limited to actual tax on the net capital gain.
Yes. Repatriation from the NRO account is capped at USD 1 million per financial year across all remittances. The CA must certify compliance via Form 15CB, and Form 15CA must be filed online before the bank transfer. Property originally purchased from an NRE/FCNR account can be repatriated to the extent of the original investment without counting toward the USD 1 million limit.
Brokerage or commission to the estate agent, legal fees for the sale deed, costs of obtaining clearance certificates, and any stamp duty paid by the seller can be deducted as transfer expenses. Capital improvement costs (extension, renovation) with documentary evidence are added to the indexed cost of improvement.
Section 54: reinvest the capital gain in a new residential house within 2 years (or construct within 3 years). Section 54F: reinvest the net sale proceeds in a residential house. Section 54EC: invest up to ₹50 lakh in NHAI/REC bonds within 6 months (5-year lock-in). If reinvestment takes time, deposit the gain in a Capital Gains Account Scheme before the ITR filing deadline to preserve the exemption.
Related services
A pre-sale consultation saves far more than the fee. We'll compute your gain, identify every exemption, coordinate TDS, and — for NRIs — handle the complete repatriation process.