Purchase of property from NRI
This query is : Resolved
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09 August 2026
Hello all experts
Pl advise. I want to purchase a property from NRI. He is OCI card holder living in USA but he is not having PAN no and account in India. Is it possible. His mother is a holder of POA to sell. In whose account i shall transfer sale consideration amount. And how much TDS should I deduct after making payment.
Regards
Pl advise. I want to purchase a property from NRI. He is OCI card holder living in USA but he is not having PAN no and account in India. Is it possible. His mother is a holder of POA to sell. In whose account i shall transfer sale consideration amount. And how much TDS should I deduct after making payment.
Regards
09 August 2026
PAN is mandatory for the NRI seller — he must apply via Form 49AA (no India visit needed) before the deal, or TDS defaults to a flat 20%+.
Sale money goes to the NRI's own NRO account, not his mother's account — POA lets her sign the deed, not receive the funds.
TDS is under Section 195 (not 194-IA): ~12.5% + surcharge + cess if long-term (>24 months held), or slab rate if short-term — deducted on full sale value.
Buyer needs a TAN, must deposit TDS and file Form 27Q, then issue Form 16A.
If actual capital gain is low, seller should get a Section 197 Lower/Nil TDS certificate beforehand to avoid excess deduction.
Sale money goes to the NRI's own NRO account, not his mother's account — POA lets her sign the deed, not receive the funds.
TDS is under Section 195 (not 194-IA): ~12.5% + surcharge + cess if long-term (>24 months held), or slab rate if short-term — deducted on full sale value.
Buyer needs a TAN, must deposit TDS and file Form 27Q, then issue Form 16A.
If actual capital gain is low, seller should get a Section 197 Lower/Nil TDS certificate beforehand to avoid excess deduction.
09 August 2026
TAN required by buyer before deal or after deal he can apply.
11 August 2026
Apply before making any payment or even before advance payment.
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