Sale of property held jointly with a non resident Indian
This query is : Resolved
02 September 2026
I own a flat in a coop society bought in 2006 in my first name and second name my daughter. She got married in 2008 working and a SWISS citizen now. My daughter was a student in 2006.
She executed a general Power of atorney in favour of my husband in 2016 ,which is notarised
but not registered. I want to sell this property now . what are the tax implications ?
THANKS
She executed a general Power of atorney in favour of my husband in 2016 ,which is notarised
but not registered. I want to sell this property now . what are the tax implications ?
THANKS
02 September 2026
Ownership & PoA Flaw: The 2016 unregistered PoA is legally invalid for executing a property sale on behalf of the daughter; it must be formally registered or executed properly through diplomatic channels (Indian Embassy in Switzerland).
Capital Gains Classification: The sale qualifies for Long-Term Capital Gains (LTCG) since it has been held for roughly 20 years.
Tax Rates: Both co-owners are subject to LTCG tax at 12.5% (plus surcharge and cess), computed according to their respective ownership ratios.
TDS Impact: The buyer must deduct TDS under non-resident rules (Section 195) on the portion belonging to the NRI daughter, and obtaining a lower deduction certificate beforehand is strongly advised.
Capital Gains Classification: The sale qualifies for Long-Term Capital Gains (LTCG) since it has been held for roughly 20 years.
Tax Rates: Both co-owners are subject to LTCG tax at 12.5% (plus surcharge and cess), computed according to their respective ownership ratios.
TDS Impact: The buyer must deduct TDS under non-resident rules (Section 195) on the portion belonging to the NRI daughter, and obtaining a lower deduction certificate beforehand is strongly advised.
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