Sale Of Property By Non Resident Indians
Posted on October 01 2020
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A Non Resident wants to sell his property then he is required to follow these tax rules.
1. Irrespective of the sale value of the property is even less than the specified amount then the buyer is required to deduct a TDS u/s 195 at 20% or 30% depending on case to case basis.
2. The buyer is required to obtain TAN registration and then file eTDS return.
3. The buyer is required to issue a Form 16A to the seller.
4. The NRI seller is required to attain a PAN.
5. The NRI seller is required to file Income Tax Return.
6. The buyer of the property will deduct tax (TDS) on the sale value of the property without reducing the cost of purchase. So, NRI seller is required to figure out the actual tax liability after reducing the indexed cost of acquisition of the property and then file the returns. Any additional TDS done by the buyer can be claimed as refund from the department after filing his/her income tax return.
7. NRI can also reinvest capital gains in the property or in capital gain bonds after being specified by Income Tax Act
8. In case if the NRI feels that TDS should be deducted at a lower rate which is less than 20% - 30% or at Nil rate then he requires to apply to the Income Tax Officer and attain no TDS certificate.
Tax Assist is a professional income tax consultancy in India for both corporate houses and individual tax payers; the latter comprising Salaried Individuals, Seafarers, Professionals and Non Resident Indians.
With the help of Tax Assist and its team of income tax professionals, taxpayers can minimize their Income Tax liability, maximize their net income and create opportunities to save for current and future needs while maintaining proper accounting standards and income tax returns which are compliant with the Law.
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