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Tax calculation on selling property held by an nri to reside

02 May 2015

Hi,

I am an NRI and I am selling an property in India.The property is jointly held by my wife and my spouse.My wife is not an NRI.

The selling cost of property is 60L.Now the buyer of the property is deducting 1 % TDS for half the amount (30L)and since I am NRI deducting 20% for other half.I read some articles and came to know that best way to reduce the 20% rate is to apply for NIL deduction or tax exemption certificate.

Please let me know if somebody has ever taken this type of certificate from Assessing officer.How much time does it take and how complex is the process.

Is it fine if I deduct the tax at this point and get the refund later?

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2 Replies

CA HAYEDAR SHAIKH (Practice ) (622 Points)
Replied 02 May 2015

Dear Harish,

Deducting TDS @ 1% is not correct. He needs to deduct TDS @ 20%.

If you want lower TDS deduction, you need to apply for Lower TDS certificate in Form No. 13 to your concerned AO.

After compliance and necessary documents submission the AO will issue the certificate u/s. 197.

It will take minimum 2-3 weeks time to complete as it is Govt. work. It is also not lengthy process.

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HARISH KATHPALIA (Others) (25 Points)
Replied 02 May 2015

Originally posted by : HARISH KATHPALIA
	Hi, I am an NRI and I am selling an property in India.The property is jointly held by my wife and my spouse.My wife is not an NRI. The selling cost of property is 60L.Now the buyer of the property is deducting 1 % TDS for half the amount (30L)and since I am NRI deducting 20% for other half.I read some articles and came to know that best way to reduce the 20% rate is to apply for NIL deduction or tax exemption certificate. Please let me know if somebody has ever taken this type of certificate from Assessing officer.How much time does it take and how complex is the process. Is it fine if I deduct the tax at this point and get the refund later?

Hi Hayedar,

Thanks for the reply.I actually discussed with the builder and he was positive in removing my name from the BBA.This way the property will be in just one name and since she is resident only 1 % will apply..Any sugrestion.