Are you sure of buying property from a NRI ???
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11 ماه پیش
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When you are ready to
When you are ready to buy a home, it’s not always necessary to buy a newly constructed one. It’s likely that the house you have your eye on is a resale one. A resale home is one that was purchased and is now for sale by the initial owner or buyer. There is a certain procedure that you should follow while buying a resale home; The same process is followed when you buy a resale home from an NRI, save for a few differences, we talk about that in this video.
Important Links
How to apply for TAN - How to apply for a New TAN online in ...
Pay TDS – Can use TDS Return (234E) link
TDS return(form 27Q-payment to Non-Resident) – Payment to Non-Resident| How to file ...
How to register on Traces Website as Deductor - Traces Website registration as Deduct...
How to issue Form 16A - How to issue Form 16A | Form 16 vs 16...
TDS return U/s 234e (Late Filing) - File TDS Correction Online| Latest Pr...
Change Owner(Name/ Mobile) in Property Tax - No Dues Certificate| Change Owner(Nam...
Pay Property Tax Online - New Process | No Dues Certificate| Pa...
Buy or Rent a house ? - Confused? Guaranteed Decision ! Buy o...
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Purchasing or selling a home from a non-resident Indian (NRI) is significantly more challenging due to the legal and financial complexities of the deal. NRIs must be extremely careful while making such transactions because the rules in these circumstances differ from normal ones.
While citizens of the majority of nations don't need permission from the Reserve Bank of India to sell their property to Indians, NRI sellers from Afghanistan, Bhutan, China, Pakistan, Nepal, and Sri Lanka do need permission. Also take note that if you plan to purchase agricultural land, RBI approval is required regardless of the nation where the NRI resides. Verify that all necessary approvals are in place.
The buyer needs a Tax Deduction and Collection Account Number (TDCAN), while the seller needs a Permanent Account Number (PAN) to complete the transaction. (TAN). You won't be able to deduct the tax—tax deducted at Source, or TDS—that you as a buyer are required to pay without a TAN. If neither party has the aforementioned numbers, they both may apply for the same. Also, keep in mind that both buyers must be tan if you and your wife are purchasing this home. If there are multiple sellers, each of them must pave PANs as well.
Ask the seller to provide a specific power of attorney for his representative in India if he demonstrates that he is unable to be present in India to finish the transaction and wants to award that person power of attorney. Someone is given a general power of attorney to handle any kind of financial transaction on an NRI's behalf. This representative's authority would be somewhat constrained by a specific power of attorney, which would be in the buyer's favour.
Depending on the deal value, you may need to deduct more than 20% of the deal's transaction value as TDS.
If the property is worth between Rs 50 lakh and Rs 1 crore, the deduction of TDS will be at the rate of 22.88 percent of the deal value; or, the deduction of TDS will be at the rate of 20.80 percent. If the property is worth more than Rs 1 crore, the deduction of TDS will be at the rate of 23.92 percent of the deal value.
Keep in mind that you are essentially claiming a tax deduction for the seller's capital gains. However, you should subtract the money based on the entire deal value. Proceed with the customary procedure unless the seller provides a certificate issued by an income tax officer proving a lesser tax liability.
Within seven days following the month in which the transaction occurs, the TDS money must be deposited with the income tax department. After depositing the money with the authorities, you must also file the TDS return and give the seller Form 16A.
It is crucial to remember that any errors in the transaction would result in law enforcement pursuing you because finding the seller might not be practical. Because tax laws are complicated, you might not be able to comprehend how certain features of transactions overlap. Using the services of a lawyer or chartered accountant who specializes in such transactions is in your best interest.
Be careful you only deposit the sale money into the seller's FCNR (foreign currency non-repatriable), NRE (non-resident external), or NRO (non-resident ordinary) account. Never agree to place the funds in the seller's Indian savings account. This is necessary to prevent more problems.
Make sure all of the owners are on board and willing to sell the property if it has several owners. Pay each party according to their share of the property as well to prevent any further disputes.
The terms of the selling agreement, including the TDS information and seller account number, must be in writing. This would guarantee that the NRI was not intentionally misleading anyone.
Expert Tips And Tricks To Buy A Property From An NRI | Dos and don’ts for buying a property from an NRI| Buying A Resale Home from NRIs
Important Links
How to apply for TAN - How to apply for a New TAN online in ...
Pay TDS – Can use TDS Return (234E) link
TDS return(form 27Q-payment to Non-Resident) – Payment to Non-Resident| How to file ...
How to register on Traces Website as Deductor - Traces Website registration as Deduct...
How to issue Form 16A - How to issue Form 16A | Form 16 vs 16...
TDS return U/s 234e (Late Filing) - File TDS Correction Online| Latest Pr...
Change Owner(Name/ Mobile) in Property Tax - No Dues Certificate| Change Owner(Nam...
Pay Property Tax Online - New Process | No Dues Certificate| Pa...
Buy or Rent a house ? - Confused? Guaranteed Decision ! Buy o...
Best REIT in India - Best REIT in India| Real Estate Inves...
Purchasing or selling a home from a non-resident Indian (NRI) is significantly more challenging due to the legal and financial complexities of the deal. NRIs must be extremely careful while making such transactions because the rules in these circumstances differ from normal ones.
While citizens of the majority of nations don't need permission from the Reserve Bank of India to sell their property to Indians, NRI sellers from Afghanistan, Bhutan, China, Pakistan, Nepal, and Sri Lanka do need permission. Also take note that if you plan to purchase agricultural land, RBI approval is required regardless of the nation where the NRI resides. Verify that all necessary approvals are in place.
The buyer needs a Tax Deduction and Collection Account Number (TDCAN), while the seller needs a Permanent Account Number (PAN) to complete the transaction. (TAN). You won't be able to deduct the tax—tax deducted at Source, or TDS—that you as a buyer are required to pay without a TAN. If neither party has the aforementioned numbers, they both may apply for the same. Also, keep in mind that both buyers must be tan if you and your wife are purchasing this home. If there are multiple sellers, each of them must pave PANs as well.
Ask the seller to provide a specific power of attorney for his representative in India if he demonstrates that he is unable to be present in India to finish the transaction and wants to award that person power of attorney. Someone is given a general power of attorney to handle any kind of financial transaction on an NRI's behalf. This representative's authority would be somewhat constrained by a specific power of attorney, which would be in the buyer's favour.
Depending on the deal value, you may need to deduct more than 20% of the deal's transaction value as TDS.
If the property is worth between Rs 50 lakh and Rs 1 crore, the deduction of TDS will be at the rate of 22.88 percent of the deal value; or, the deduction of TDS will be at the rate of 20.80 percent. If the property is worth more than Rs 1 crore, the deduction of TDS will be at the rate of 23.92 percent of the deal value.
Keep in mind that you are essentially claiming a tax deduction for the seller's capital gains. However, you should subtract the money based on the entire deal value. Proceed with the customary procedure unless the seller provides a certificate issued by an income tax officer proving a lesser tax liability.
Within seven days following the month in which the transaction occurs, the TDS money must be deposited with the income tax department. After depositing the money with the authorities, you must also file the TDS return and give the seller Form 16A.
It is crucial to remember that any errors in the transaction would result in law enforcement pursuing you because finding the seller might not be practical. Because tax laws are complicated, you might not be able to comprehend how certain features of transactions overlap. Using the services of a lawyer or chartered accountant who specializes in such transactions is in your best interest.
Be careful you only deposit the sale money into the seller's FCNR (foreign currency non-repatriable), NRE (non-resident external), or NRO (non-resident ordinary) account. Never agree to place the funds in the seller's Indian savings account. This is necessary to prevent more problems.
Make sure all of the owners are on board and willing to sell the property if it has several owners. Pay each party according to their share of the property as well to prevent any further disputes.
The terms of the selling agreement, including the TDS information and seller account number, must be in writing. This would guarantee that the NRI was not intentionally misleading anyone.
Expert Tips And Tricks To Buy A Property From An NRI | Dos and don’ts for buying a property from an NRI| Buying A Resale Home from NRIs
11 ماه پیش
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