Income Tax for buying property from NRI

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  1. rajivgupta1107

    rajivgupta1107 New Member

    I am going to buy a Flat from NRI. Actually the seller is India and deputed in Denmark in ministry of External Affairs. I have following queries:

    a) For NRI, I need to deduct tax on the registry amount. What is the slab for tax deduction in this case along with surcharge, cess etc.
    b) Should I deduct tax before registry and submit the same with IT department or after registry. What is the time frame when I need to deduct and submit the TDS.
    c) What is the process for submitting the tax once same has been deducted.
    d) I read, TAN is required in this case. Me and my wife will be co-owners. Do we need TAN for both of us as she is non working.

    Note: Seller is having his PAN number.

    Please provide the requested information.
    Regards, Rajiv
    Last edited: Oct 12, 2016
  2. nikhil9090

    nikhil9090 Member

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  3. Company Formation

    Company Formation New Member

  4. Replies as foll0ws:

    There is no slab rates. If the capital gain is long term (property held by seller for > 3 years), the applicable rate will be 20.60% (if property value is < 1 CR) or 23.69% if property value is > 1 CR

    TDS has to be deducted at the time of payment. It does not have anything to do with the date of registration.

    After deducting TDS, you can deposit the tax in challan ITNS 281 on Income Tax website

    Yes, TAN of both joint owners will be required. You will also have to file separate TDS returns in Form 27Q

    After filing 27Q, you will have to download Form 16A from TIN website and give it to the seller. .

    Seller will file his tax return take credit of this TDS in the return.
  5. shwetal oswal

    shwetal oswal New Member

    Sir, is Form 15CA-15CB is required to be filed, in case of payment to N.R. in such case.
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