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    sajjad1951's Avatar
    sajjad1951 Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Dec 30, 2011, 09:43 PM
    Is rthere inheritanxe tax in India for US citizen? They say 20.6%. Pl clarify?
    Now I am US citizen. Left India 40 years ago. Now selling father's property. They say keep money in indian bank for 3 years. Then there will be no tax. But if we change to us dollars now, Does this make sense and legal? Should I keep there for 3 years? Will it be safe or how to keep it safely for 3 years?inheritance tax of 20.6% will be deducted. That's why buyer is telling to apply and obtain PAN # from Income Tax Dept of India.
    Can you explain all these
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #2

    Dec 30, 2011, 11:04 PM
    There is no inheritance tax in India. But when you sell property, the gain from sale of property is taxable.
    You will also have to report this sale on your US tax return. You will claim credit for taxes paid in India; for this use form 1116.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #3

    Dec 31, 2011, 03:42 PM
    If you can avoid the tax by keeping the money IN India, then keep the money in India.

    You WILL have to pay long-term capital gains tax on your U.S. income tax return, but that maxes out at 15% and is likely only 5%.
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