Sale of Property in India

Hello,

I am a resident of Washington State. In October 2024, I have sold a property in India which I owned 50% and my mother who is a resident Indian owned 50%. The property was bought 16 years back and since the capital gains calculated in India considers an inflation index due to which the gains calculated are on lower side as compared to the US The buyer had deducted the TDS before paying the final amount.

I had bought the flat 16 years back with my mother being the co-owner. The capital gains calculated in India considers an inflation index due to which the gains calculated will be lower than the TDS deducted, which means I am expecting refund on TDS deducted during sale of property in my 2025-26 Tax return in India as the capital gain on sale of property will be almost zero.

In that case, do I still need to pay capital gains tax in US and do we consider indexing rule while calculating capital gains tax in US for sale of property in India?

posted