NRI selling immovable property in India can save TDS

[@HChauhan18]

I contacted Mr Angad after watching this insightful video on NRIs selling property in India, since then it has been an awesome experience to interact with Mr Angad and he helped me sorting out all legalities in selling my property. Highly recommended.

[@bicaps1313]

Thanks Hemant ji ❤️

[@hemantrk283]

Amazingly simple and clear. Thanks for detailed inputs. 🎉

[@KPSeth]

Thanks Angad Pal Singh

[@tapeshlall7964]

Thank you Angad Pal Singh. I found your presentation very helpful and productive.

[@bicaps1313]

kzbin.info/www/bejne/q2Swm6ukeM2EZtk New video is out. Important *FEMA Provisions* relating to immovable property transactions by persons resident outside India. Like, Comment, Share, Subscribe

[@cadeepaksheoran2762]

Angad gi, that was very useful information, thanku🙏

[@bicaps1313]

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[@SaurabhKumar-rr3ip]

Hello Sir Thank you for making this useful video for NRIs. My question is what is the tax implication if property is joint and one seller is resident and other is nri. In this case, is there any way to lower tds without going for lower deduction certificate.

[@prakashnathani5060]

Sir, it is very clear and clean explanation. Thanks a lot 🙏

[@bicaps1313]

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[@KPSeth]

Thanks Singh Sahib

[@prasadkulkarni9280]

Hello Sir.. Very nice and clear explanation Sir.. i had a query. What would the the total of TDS, surcharge and cess for a property value of 1.25Cr sold by NRI. i checked the section 195 but there are rates given for sale value of above 1Cr and also for sale value between 1Cr and 5Cr. So which of it has to be considered? Thank you

[@bhupendraraja4136]

Great explainasation thx

[@kokilapatel6530]

Does the nri buyer need to be present in India for the transaction of the property. If they're more than one seller, do all need to be present to sign the contract?

[@bicaps1313]

A property consultant would be in a better position to reply to this. All I can tell you is that rule is different in different states

[@bicaps1313]

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[@peterpaulchimata9916]

Sir, my query is this: I am going to purchase a residential apartment from an NRI. She acquired this apartment as her share free of cost, from the builder with whom she entered into Development Agreement Cum GPA. How can I deduct TDS from the sale proceed and at what rate please? Thank you.

[@harsha4357]

Very well explained sir. Thank you so much 😊 🙏

[@bicaps1313]

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[@KPSeth]

Thanks a lot Angad ji I will contact you soon regarding this since I am NRI

[@bicaps1313]

Any time Ji

[@jasbirsingh1724]

Refund is with interest?

[@bicaps1313]

Refund with 6% per annum interest but it starts much later, so effectively not much of it is compensated.

[@bicaps1313]

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[@HARISH21875]

Good information. Appreciated

[@bicaps1313]

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[@praveentripathi1]

What if seller is living outside India and he is taking consideration amount in Indian account. How much TDS should be deducted by buyer?

[@bicaps1313]

If seller is an NRI, does not matter in which account he takes payment, TDS will be deducted at 20% plus SC plus EC on full amount

[@ashishvlogs7680]

Thanks most helpful information

[@bicaps1313]

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[@anvesh74]

Hi Angad, if an NRI sells his old house at Rs.X today to a resident Indian and bought an under construction house due for completion in 1-2 years for Rs.2X from a builder, can he avoid 22-24% TDS deduction by the buyer?

[@bicaps1313]

In this case, you are trying to claim the deduction under section 54 against the capital gain arising from the sale transaction. Yes you can avoid if you apply for lower deduction certificate and can convince the officer with your documentation

[@gsingh5617]

Singh saab, what about resident or nri on agriculture land sale.

[@bicaps1313]

If it’s a rural agricultural land, it does not fall under the definition of capital asset and hence no capital gain arises on its sale.

[@madhurmangule]

I am planning to purchase a property from NRI and came across the concept of TDS deduction certificate. We want close deal soon and option for nil capital gain and lower TDS exemption certificate which is under process but it takes more time a months for certificate But CA of seller suggesting that CA can issue a with calculation highlighting that there is capital loss or deduct approx percentage tds then he will file tax return for seller in next financial year. Is this option correct? Please suggest

[@bicaps1313]

No. This won't be the legal way of executing the transaction. That is a remedy available in general under section 201(1) but under specific section 195, the only remedy is obtaining lower deduction certificate from the income tax officer.

[@madhurmangule]

@@bicaps1313 thanks a lot sir

[@bicaps1313]

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[@pradeepkumarjha7170]

Hi sir, Nice video.. Just one question how TDS is applied in case of 3 seller(mother,father and son) and if 2 seller(mother and father) is in india and son has moved abroad for work on work visa and has pan card in India. Father has GPA on behalf of son. All transactions will happen to father/mothers account who are Indian resident. There are two buyers in this case.

[@bicaps1313]

Having GPA means the person is transacting on behalf of the original seller. So TDS provisions shall apply accordingly. The TDS on the portion of Mother & Father will be as per resident (194IA) and TDS on the portion of Son will be as per NRI (195). Son may gift the property to father or mother or both by registry on their name to avoid NRI TDS but in that case, stamp duty shall be payable depending upon state (Delhi levied stamp duty on blood relatives transfer also whereas Punjab doesn't) The above is a prima facie response. Do not act without proper consulting a CA in order to avoid losses from non compliance

[@pradeepkumarjha7170]

@@bicaps1313 Thank you for reply sir.. Even if no money is being transferred to son's account ..TDS need to be deducted from him? If yes on what proportion?

[@bicaps1313]

Without checking documents and asking proper facts, it would lead to improper advice. Please book a consultation session for further advisory.

[@bicaps1313]

kzbin.info/www/bejne/q2Swm6ukeM2EZtk New video is out. Important *FEMA Provisions* relating to immovable property transactions by persons resident outside India. Like, Comment, Share, Subscribe

[@bandz7770]

Hi thank you for the info... more Q...What's the validity of the lower tax deduction certificate ( received by income tax officer )...?? If one buyer changed his mind and say another buyer is ready for the deal...The same cert can be used for the seller..??

[@bicaps1313]

LDC is buyer specific

[@bicaps1313]

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[@gulammurtuza1541]

Angad Ji Thanks for explaining the tax implications on sale of property for NRI’s Dose this also apply to OCI card holders as I am an Indian by birth and moved to USA and got by US citizenship and also I got my OCI Card. Please explain this topic as well. Thanks

[@bicaps1313]

Yes it applies to OCI holders too. You need to determine your residential status as per income tax law. The detailed article for your reference: www.singhapca.com/residential-status-income-tax For further consultation, you may refer www.bicaps.net.in/nri

[@bicaps1313]

kzbin.info/www/bejne/q2Swm6ukeM2EZtk New video is out. Important *FEMA Provisions* relating to immovable property transactions by persons resident outside India. Like, Comment, Share, Subscribe

[@tamiltholaikatchi]

@@bicaps1313 Sir, The FEMA video is private. Can you please make it public?

[@rohithinduja93]

Thanks a lot sir..... Crystal clear and to the point.. Exactly what I was looking for. A few points that can be of further help. Are the DTAA and tax refund two distinct benefits? I mean does the NRI seller stand to receive both the benefits or either one? For eg: if he takes a tax credit in Australia as DTAA for his tax paid in India is he ALSO eligible to claim the difference as refunds in India between the TDS deposited and the his actual tax liability? Or would it be simple for him not bother about (claim) the tax refund in India if his tax liability as per Australian tax laws on capital gains calculated for this transaction exceeds the TDS deposited; based on which he can just apply for DTAA benefit.

[@bicaps1313]

Either of the two benefits can be taken. You get the tax credit in your country for tax PAID in other country. If you seek refund in other country, then legally you aren't entitled to claim its credit.

[@rohithinduja93]

@@bicaps1313 Thank you. So if a person has paid 10% as tax in India (The effective amount after considering refund or Lower TDS), then he is not eligible receive this 10% as tax credit in Australia as per DTAA?

[@bicaps1313]

kzbin.info/www/bejne/q2Swm6ukeM2EZtk New video is out. Important *FEMA Provisions* relating to immovable property transactions by persons resident outside India. Like, Comment, Share, Subscribe

[@neelesharaj6810]

What date do you consider as date of purchase? Possession date?

[@rasilaparikh]

Excellent. Well explained.

[@bicaps1313]

kzbin.info/www/bejne/q2Swm6ukeM2EZtk New video is out. Important *FEMA Provisions* relating to immovable property transactions by persons resident outside India. Like, Comment, Share, Subscribe

[@dimplegupta1514]

Superb

[@sachindraagrawal8825]

If seller is actually having capital loss instead of gain and if he obtains NIL deduction certificate and provide it to buyer, in that case still buyer should have TAN and file tds?

[@bicaps1313]

Mention of buyer TAN is mandatory while applying for lower/NIL TDS certificate

[@sachindraagrawal8825]

@@bicaps1313 thanks for very quick reply...how much time it take to obtain TAN number and how much it takes to get the nil deduction certificate ?

[@bicaps1313]

@@sachindraagrawal8825 7-10 days TAN 30 Days LDC

[@bharathvoola2822]

In case of seller maintains India bank account and deposits sale considered into India or NRO account. Tax deduction is still applicable? If so 15CA and 15CB to be obtained, As money is not going out of India Appreciate your reply

[@bicaps1313]

Bank account doesn’t matter when it comes to tax applicability. The residential status of the person matters. If the person is a non resident as per section 6, TDS applicable as stated in the video. As regards repatriation, 15CA-CB is applicable if the money is going to NRE account or a foreign account. 15 CACB not required for transfer to NRO account.

[@bharathvoola2822]

@@bicaps1313 Thanks you, this is helpful. 👍

[@bicaps1313]

kzbin.info/www/bejne/q2Swm6ukeM2EZtk New video is out. Important *FEMA Provisions* relating to immovable property transactions by persons resident outside India. Like, Comment, Share, Subscribe

[@jasbirsingh1724]

What all information does IT dept ask before giving lower tds deduction certificate to the seller?

[@bicaps1313]

The correct calculation of tax considering all the applicable tax provisions

[@jasbirsingh1724]

@@bicaps1313 do they ask for sale agreement or the amount of sale proceed

[@jasbirsingh1724]

@@bicaps1313 exact amount or appropriate amount will do.

[@bicaps1313]

Exact. And of course they ask for supporting documents not just the figures

[@bicaps1313]

kzbin.info/www/bejne/q2Swm6ukeM2EZtk New video is out. Important *FEMA Provisions* relating to immovable property transactions by persons resident outside India. Like, Comment, Share, Subscribe

[@AmitKumar-zt3rq]

Thanks a lot Angad. Its very useful. You doing great job. Could you please help me with my case pls. I am in Merchant navy. For this year i am having “Resident Not Ordinarily Resident” and selling an property. I bought a house in 96 Lacs and selling the same property in 94 Lacs. (Meaning incurring 2 lacs loss). 1. What should i do? 2. What will be the TDS on me in my case of my residence status? 3. Should i apply nil TDS certificate since i am not making any profit? FYI: Buyer is also enjoying NRE status. However we both are indian citizen. Awaiting your positive response.

[@harkiratkaur1505]

Im selling my property... What to do?

[@naren1500]

Thanks for clarity

[@bicaps1313]

kzbin.info/www/bejne/q2Swm6ukeM2EZtk New video is out. Important *FEMA Provisions* relating to immovable property transactions by persons resident outside India. Like, Comment, Share, Subscribe

[@vinaykarbhari6933]

Sir What if NRI is not opting for indexation benefit? Also what is NRI is investing in residential property outside india?

[@bicaps1313]

Indexation is not an option. It is a mandatory provision to calculate capital gain if the asset is a long-term capital asset. And without taking indexation benefit, the long-term capital gain will be higher, I am not able to guess why would someone not take it? And section 54 that provides for exemption of long-term capital gain upon investment in a new residential property, clearly states the new residential property has to be purchased in India

[@bicaps1313]

kzbin.info/www/bejne/q2Swm6ukeM2EZtk New video is out. Important *FEMA Provisions* relating to immovable property transactions by persons resident outside India. Like, Comment, Share, Subscribe

[@GurmeetSingh-ls8xb]

Hello Sir, Thank you so much for this useful information. Could you also share the information regarding the TDS if the property is taken on bank loan? Would the profit amount decreases based on the difference of the total cost minus the total interest you have paid to the bank? Thank you!!

[@bicaps1313]

The matter of allowing interest cost as a part of cost is litigative and there are contradictory decisions of various adjudicating authorities on this matter. There is no provision in law which expressly allows interest cost while computing capital gains but there is also no provision denying it.

[@bicaps1313]

kzbin.info/www/bejne/q2Swm6ukeM2EZtk New video is out. Important *FEMA Provisions* relating to immovable property transactions by persons resident outside India. Like, Comment, Share, Subscribe

[@gnsharma7973]

Thanks a lot Angad ji for such a valuable and knowledgeable video. First is I wish to talk you. Please give me your no. I want your guidance in the following matter. My son who is an NRI now bought a flat in Noida in 2009 when was not an NRI for 42 Lacs. He took a loan from the bank and he is still paying EMI from his NRI account. Now he wants to sell the property at the same price for which he bought. My questions are as under 1. As the selling price is less than 50 lacs is there any amount of tax liability. 2. As such there is no capital gain, rather the cost of holding the flat is added by way of Bank interest and other charges levied by the builder. There is capital loss. Please advise me.. Thanks.

[@bicaps1313]

There is no threshold of ₹50 lakh when it comes to TDS on sale of immovable property by NRI. If there’s no capital gain occurring as a result, either you’ll need to get lower deduction certificate from income tax department or let the buyer deduct TDS and you can claim refund in income tax return. For further detailed discussion, refer www.bicaps.net.in/nri

[@bicaps1313]

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[@sunnychirayil353]

Sir. I have a friend who owns about 50 acre of land in Kerala. His father bought the land in his wife’s name which is his mother. The father bought the land for Rs 15 per cent. Now my friend inherited this property and it is worth over one lakh per cent . How is the tax liability when he sell his property? Thanks

[@bicaps1313]

This is specific consultation! Ask him to contact us at 9911515363

[@bicaps1313]

kzbin.info/www/bejne/q2Swm6ukeM2EZtk New video is out. Important *FEMA Provisions* relating to immovable property transactions by persons resident outside India. Like, Comment, Share, Subscribe

[@sastryugk2816]

Hello Sir Investment of capital gains in Bonds applicable to NRI s when they sell property in India or not?Kindly clarify?

[@bicaps1313]

Yes

[@sastryugk2816]

Excuse me sir I am not able to understand still. Pl allow me to put in more explicitly . 1.A resident Indian by investing in capital gains bonds for 5 years can avoid capital gains tax.okay 2.An NRI can also invest in 5 years capital gains tax bonds n similarly avoid paying tax?? I could not understand your answer n hence this query . Do you take up our case when I sell properties of my 2 daughters in the near future? Ur contact no pl??..Sastry

[@bicaps1313]

@@sastryugk2816 Yes NRI can also avail deduction in capital gains by investing in bonds under section 54EC. You can get in touch with my office at [phone] for services,

[@bicaps1313]

kzbin.info/www/bejne/q2Swm6ukeM2EZtk New video is out. Important *FEMA Provisions* relating to immovable property transactions by persons resident outside India. Like, Comment, Share, Subscribe

[@godschildanmol1512]

Amazing content

[@SalimShaikh-jo1hf]

If NRI don't have pan no then what to do sir

[@bicaps1313]

Pan needs to be obtained without exception.

[@bicaps1313]

kzbin.info/www/bejne/q2Swm6ukeM2EZtk New video is out. Important *FEMA Provisions* relating to immovable property transactions by persons resident outside India. Like, Comment, Share, Subscribe

[@raneash]

This process is so complicated and lengthy. 4 LDCs, TAN for all buyers, Etc... i doubt any buyer would be ready to take extra effort in dealing with tax department and waiting 2-3 months for the transaction. And what if the biyers are fed up and pull out in this period? GOI should simplify these otherwise no NRI would want to invest in India.

[@bicaps1313]

The process in indeed a little trouble but not that complicated and lengthy. The buyer does not have to deal with the income tax department, its the consultant (CA) of the seller who does it. We usually receive it within 30 days time. Indeed, further simplification would ease the things, but indeed required to secure the tax payable on the capital gain accruing on the transaction.

[@bicaps1313]

kzbin.info/www/bejne/q2Swm6ukeM2EZtk New video is out. Important *FEMA Provisions* relating to immovable property transactions by persons resident outside India. Like, Comment, Share, Subscribe

[@harvindersingh642]

Beautiful information

[@bicaps1313]

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[@bidyasagar7528]

Great sir

[@bicaps1313]

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[@inderpreetkaur1116]

👍🏻👍🏻

[@bicaps1313]

kzbin.info/www/bejne/pX29gHuQmrKGebM Resident or Non Resident

[@peterpaulchimata9916]

Sir, my query is this: I am going to purchase a residential apartment from an NRI. She acquired this apartment as her share free of cost, from the builder with whom she entered into Development Agreement Cum GPA. How can I deduct TDS from the sale proceed and at what rate please? Thank you.

[@bicaps1313]

@@peterpaulchimata9916 as the buyer, your rate of TDS does not depend on her cost of acquisition. You have to deduct 20% plus SC plus EC. However, she can calculate her capital gains and obtain LDC from income tax office in order to reduce the TDS rate.