NRI planning to buy a property from another NRI

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  1. anu denni

    anu denni New Member

    i am an NRI, planning to buy a property from another NRI, What is the tax implication in India and other procedures, both buyer & seller do not have PAN.
  2. Karan Batra

    Karan Batra Well-Known Member

    Dear @anu denni

    I'm CA Karan Batra and I'm the founder of this website.

    There are several things which are to be taken into consideration in such a transaction
    1. The amount must be credit in the NRO Account of the Seller only
    2. Both the buyer and seller should have a PAN Card
    3. ITR would be required to be filed by the seller at the end of the year
    Moreover, the rules would differ depending on the time when the property was bought and source from where the money came at the time of buying. Whether this property was purchased when the person was Resident Indian or NRI, whether it was purchased through a Home Loan or through own funds.

    There are several other compliances which would be required to be done. I request you to kindly mail me all relevant details at [email protected] and I'll try to revert to all your queries.
  3. Well explained by Karan.

    To add, NRI to NRI property transactions in India is not expressly permitted as a "capital account" transaction under FEMA (Permissible Capital Account Transactions) Regulations, 2000 - hence, it is my view that a prior confirmation from RBI should be obtained before proceeding with such a transaction.
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