Hi, I HAVE house site (I owned it since 12 years)in Bangalore, India. I would like to sell it and invest it to buy rental or residential Apartment in Hyderabad. I understood that I need not pay 20% of capital gain taxes, if I do so. Please explain how I can invest it in rental or residential property and with in what time frame I have to do this exchange, and the procedure.

Thanks

You need to consult an Indian tax expert. I'm not sure we have anyone here who has that expertise.

For clarification, you are in the US. It is the property that is in India. You need information on the capital gain tax in the US Tax Code for selling the property and for reinvesting the proceeds in "new" property.

Am I close to correct in my understanding of your question?

Yes, I am in US. When I sell the site located in India and reinvest it in residential apartment in India, am I supposed to pay capital gain taxes in India on the sale of my site?

[QUOTE=shivaa44;3784239]Yes, I am in US. When I sell the site located in India and reinvest it in residential apartment in India, am I supposed to pay capital gain taxes in India on the sale of my site? I am asking tax complications in India on the sale of that site when I reinvest into an apartment. Thanks