Are you sure of buying property from a NRI ???

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.
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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

[@manojgiri7505]

very helpful video, thank you

[@BharatArora5]

Happy to help 🙏🏻

[@manojg4740]

Great Video! Thank you

[@BharatArora5]

Gald it was helpful !

[@Aniket11100]

Thank you for video on this! 👍

[@BharatArora5]

Glad it helped 🙏🏻

[@vipink1966]

Very useful video 👏👏👏👌🙏

[@BharatArora5]

Glad it helped 🙏🏻

[@Pulkit191293]

How to verify if seller is NRI or not?

[@rohuyadav]

Bank asked me to get verified power of attorney executed in USA , how it can be done

[@user-wk3zx9ur1z]

My father got general power from his NRI friend and payed full amout to NRI seller . After that my father sale deeded to Me and Mother 2 buyer total value of property is 18 lakhs sold to me and my mother 9 + 9 should we need to pay tds for that 18 lakhs and tds amount also deducted

[@VatanMehrotra]

Hi thanks a lot for this useful video it's helped lot Just one query i am planning to buy one resale flat in crossing republic area Ghaziabad (UP) and owner is NRI ( He stay somewhere in Atlanta) is RBi approval mandatory for this and what will be the TDS value for 86 lakh flat price Pls help with this query thanks

[@BharatArora5]

Do you mean does buying from NRI require RBI approval ? Please see this link... www.rbi.org.in/scripts/FAQView.aspx?Id=12

[@abrahamchillikkatilmani8045]

Thank you very informative. Meanwhile would you please help clarify if the Sellers are 2 NRI's and Buyers are 1 Resident Father actual investor & 1 NRI Son who doesn't have any investment. In this case is TAN required for both buyers ? or only for Resident Buyer (Father). Since son is NRI and he does not have any investment how can he deduct the TDS?

[@BharatArora5]

Complicated scenario but i believe you are asking that if there are 2 buyers, on of them is a NRI son, should he also deduct TDS.. the answer i think is simple.. all buyers are supposed to deduct tds per the law at least.. if the som doesnot have any investment, how is he the buyer ? for taxation, it will be assumed that since son is the buyer, he is putting in money and is not where just for namesake.. i am not an expert at this but just my 2 cents per my understanding.. please do consult a CA/ lawyer/ local broker if there is still any confusion..

[@abrahamchillikkatilmani8045]

Thank you sir for your advise

[@BharatArora5]

Most welcome.. hope it helped 🙏🏻

[@jayaramthiyagarajan885]

@bharatarora5 Thanks for the video, very useful. I had a question on tax payment. epay tax link on IT portal doesn't show the relievant section. Can you please share the procedure to deposit the tds amount using TAN?

[@BharatArora5]

Please check out the below, hope they help ! Pay TDS - Can use TDS Return (234E) link TDS return U/s 234e (Late Filing) - kzbin.info/www/bejne/j3bKnXpvmJejqpY TDS return(form 27Q-payment to Non-Resident) - kzbin.info/www/bejne/o5y0dXlmd9mFh68 How to apply for TAN - kzbin.info/www/bejne/eGHIY6efhq9rn7c How to register on Traces Website as Deductor - kzbin.info/www/bejne/hqmzhZqafpWlrpY How to issue Form 16A - kzbin.info/www/bejne/Y2athGZur5hjpNE Change Owner(Name/ Mobile) in Property Tax - kzbin.info/www/bejne/oJLHfpyon5uDrLc Pay Property Tax Online - kzbin.info/www/bejne/kILScpWuob2WeJI

[@mohammedshoaib9740]

What if in case of joint seller one seller is nri and the other is resident!

[@BharatArora5]

Interesting 🤔 NRI rules would apply to NRI and normal to resident i would guess..

[@sunmountain788]

If in a case property value is 66 lac and 2 sellers 1 NRI 1 Indian How much need to pay tds 1 NRI 22.8% of 66 or 33 lac 2 Indian 1% of 33 lac Please guide confusion in NRI TDs amount

[@tharunkumar9048]

If a property value is 1cr then should buyer pay extra 22 lacs which becomes total 1.22cr or should he pay 78 lacs +22lac(tds) for the property , need some clarification

[@kumarjotwani7175]

Latter one 78 + 22L for tds

[@BharatArora5]

That depends on your deal close value with the seller.. if you have closed the deal at 1 CR, then 78+22 but if the deal is closed at 1.22 then 1+.22..

[@ddexplore]

Hi, the seller has shared his joint account details. Seller, his wife and his daughter are joint account holders. However property is registered in name of seller and his wife. Shall I transfer the whole amount to this joint account? Thank you for making this video.

[@BharatArora5]

I think to be on a safer side, you should transfer to seller and wife equally and not to joint account..

[@ddexplore]

@@BharatArora5 Can i do the payment via cheque then? Will it be safer on my part? they can cash it into joint or individual accounts right?

[@aarushigupta2264]

Hello, I need a help regarding 27Q return filing , can i connect with you ?

[@BharatArora5]

How to file TDS return(form 27Q-payment to Non-Resident) using free Software by IT Dept| New| Latest kzbin.info/www/bejne/o5y0dXlmd9mFh68

[@botgosindia8531]

Hello Arora ji, Me and my wife (housewife) are buying property from a NRI, do we both have to open TAN account separately and deduct TDS!

[@BharatArora5]

Yes, as explained in the video considering all other factors too !

[@spillai6000]

Hello Bharat, thanks for this video. A couple of questions: 1. What happens if Pay the 23.92% TDS a week before the sale deed registration, but for some reason either me or the NRI seller backs out of the deal. How can I get back 23.92% amount that I paid as TDS?

[@BharatArora5]

I believe you would have to file a return to get refund.. Pls do let us know what you finally do so others can benefit from it as well...

[@spillai6000]

@@BharatArora5 I spoke to a couple of CA. They told me that you have to visit the IT department of your city and follow up with them. It might take 2-3 months but you will your money back. Might have to bribe them as well. The owner looks genuine, So I'm going forward with it. I'll make sure that the time u between TDS payment and sale deed registration is not a lot. Like 2-3 days of difference only. That will be less risky.

[@pradeepdev7774]

Hi sir, thank you. The video has been very helpful and informative. Can I please connect with you. I am in a tricky situation.

[@BharatArora5]

Glad it helped.. please post your question here and I will try to help if I can 🙏🏻

[@pradeepdev7774]

We have already made a sale agreement without knowing all this stuff in Feb 24. The seller is applying for form13 now and may take some time dor lower tds. Now we are planning to go ahead with registration and I am planning to hold 20% of Sale agreement since it’s already late. Will I get 1 month time to deduct TDS at 20% or whatever they get tax as an output of form 13. Is it fine to go ahead like this sir? Hope you got it

[@sandy00718]

Hi my NRI seller is asking for paying his 22 lakh loan via my loan , the loan amount is half the cost of the property , this transaction will happen via agreement to sale and the seller is coming only for 15 days , is it safe to go ahead with this deal ? Seller will create TAN before coming

[@BharatArora5]

This seems normal, paying off a loan from seller with buyers loan.. do you see any risk ? do check with your bank from which you are getting a loan before signing the ATS.. They can let you know if the paperwork is complete.. Good luck

[@sandy00718]

@@BharatArora5 seller is asking me to use the same bank SBI only issue is property tax 1st owner name is there which seller is asking me to directly transfer to my name and seller will come sign the Agreement to sale and then will go to his hometown and will come back to sign the deed my only issue what if I clear the loan and seller takes the property paper and doesn’t return to sign the deed

[@BharatArora5]

You need to check the authenticity of the transaction and involve a broker as applicable.. see the sellers place/ location of stay..