NRI buying property from NRI

Share
Share This Thread
  1. atozsuresh

    atozsuresh New Member

    Hi,

    I am an NRI buying property from another NRI,. What is the tax implication in India as per income tax laws & which section is applicable. Both have PAN numbers
     
  2. atozsuresh

    atozsuresh New Member

  3. NRI buying property from NRI is not expressly permitted under FEMA - my request will be to get a prior clearence from RBI before proceeding with the transaction.

    Tax implication is as follows:
    1. Assuming capital gain is long term, NRI buyer will have to deduct TDS @ 20.60% or 23.69% depending on agreement value
    2. NRI seller can claim a lower TDS by applying to AO u/s 197 of the Act and providing it to the buyer.
    3. NRI seller will have to file tax return in India where he will have to offer the capital gain to tax and claim TDS deducted by buyer.

    Thanks!
     
Draft saved Draft deleted
Loading...
Similar Threads Forum Date
Buying Property below Guidance Value by a Firm Income Tax Jun 19, 2017
Can wife claim Capital gains benefit under sec 54 by buying property owned by husband Income Tax May 2, 2017
TAX INVOLVED IN PROPERTY SELLING & BUYING Income Tax Mar 13, 2017
tax implication for buying NRI property Income Tax Feb 7, 2017
Capital Gains Tax on buying a property Income Tax Jan 22, 2017