Hello PK -
Thank you for the time to respond. You are correct, TDS on India property sales by NRI is 20% . Let me try one more time to clear my understanding
1. As a US Resident, for the sale of property in India, for US Tax purposes the capital gain should be Sale Price - Purchase price - Sale Expense(like Travel and sales commission). Since there is no indexing, it will simply INR converted to USD based on the exchange rate applicable on the day of the transaction.
2. As US Resident, the amount Seller pay TDS in India, needs to claim the refund as applicable in India. He/She needs to pay the Tax on Capital gain in the USA only. Hence, no need to declare the TDS as a foreign tax credit since TDS is temporary in nature.
Another question, can you tell me how to reach you for any further questions in this regard? Are you part of Turbo tax advisory team whom i can reach through live help option?
