@punjun2019 , Namaste ji
For US tax purposes :
(a) Your basis in the property is your acquisition cost ( actual price you paid + any commissions etc. that you were required to pay, costs to make the place habitable -- electricity / water sewer connections etc. ) PLUS cost of any improvements over the period of ownership.
(b) Depreciation must be recognized , whether taken or not -- if the property was used for income generation / rented out etc. Accumulated Depreciation is the sum of all allowable depreciation during period of rental usage -- it is not material whether this was recognizes/used or not.
(c) Adjusted Basis is Basis LESS Accumulated Depreciation and is used for purposes of computing gain / loss when the asset is disposed of.
(d) Sales Proceeds is Sales Price LESS allowable sales expenses ( such as repairs prior and for purposes of sales, sales commissions, title insurance , transfer tax etc. -- all costs that are purely for purpose of the effecting the sale / transfer of the asset ).
(e) The gain on the sale/ disposition of the asset is Sales Proceeds LESS adjusted Basis.
For ITR, your gain/loss computation is different than the above US version. The TDS is an estimated tax withholding . It will count as Foreign Taxes paid , just as the Gain per US rules would count as Foreign Source income ( capital or otherwise ). It is best ( will prevent need for amended return ) to file the US tax return recognizing the foreign source capital gain ONLY after the Indian ITR has been settled. You would generally report the Foreign Source Gain and the Foreign Taxes paid on form 1116 ( Foreign Tax Credit , under Deductions and Credits tab ).
Does this help ? Or did I miss interpret your question about property sale in India ?
Is there more I can do for you ?
