Sale of property by nri

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 May 2013 Mr. A – has a property in India which was purchased by him in March 1992 @ Rs. 5.21 Lacs. Now he is UK Resident aged around 80 Years. Now he want to sell the property but cant travel to India. He is willing to sell the property @ Rs 1.68 Crores.

Option 1
If Mr. A authorized one person in India through POA to sell the property & that POA Holder sells the property @ 1.68 Crores. If money is paid to POA Holders account as mentioned in POA. Then who will be liable for Capital gain. Seller who is there in UK or POA Holder & what will be tax amount & its calculation.

Option 2
If Mr. A personally visits to India & sells the property then how the payment can be done to him as he don’t have any account in India. Can the purchaser make the payment in his foreign bank account . Is that allowed under FEMA / FERA. What will be tax implication & tax calculation.

Option 3
If Mr. A not coming to India & sells the property through POA Holder @ 1.68 Crores but the payment is not done to POA Holder. Can the purchaser makes the payment to Mr. A’s Foreign Bank Account. Is that allowed under FEMA/ FERA. What will be tax implication & who will be liable to pay tax & where. What will be tax calculation.

Regards.

Satyam

Rupesh Jain

Rupesh Jain (Expert)

22 June 2013 1) Buy deduct TDS U/s 195 @ 20% and NRI also lible to capital gain.
2) 1) also applicable and buyer take permission for sending money out of india under FEMA/FERA
3) above two ans. applicable

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