Tax on sale of property

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Heena Bashmakh (Querist)

16 January 2016 Need urgent advice NRI sold property in India through his brother. But there is no power of attorney. he will pay capital gains and want to repatriate money. Now question is who will pay tax..NRI or his brother in representative capacity. If brother than what is the Procedure. Is power of attorney is mandatory. in return filling is mandatory how this tax paid will reflect.

Naresh Dharia F.C.A.

Naresh Dharia F.C.A. (Expert)

16 January 2016 NRI will have to pay the Tax in case of sale of Property in India.
In case he does not want to pay tax then he has to have the calculation of Capital Gain as NIL taxable.
Hence he has to file the return of income in India...Ok

Naresh Dharia F.C.A.

Naresh Dharia F.C.A. (Expert)

Naresh Dharia F.C.A.

Naresh Dharia F.C.A. (Expert)

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CA TSR

CA TSR (Expert)

16 January 2016 The buyer of the property is required to make TDS U/s. 195. The brother of NRI is not having Power of attorney, hence how it is possible to register the property without signing of the seller i.e. NRi or his power of attorney/GPA holder. In absence of power of attorney / GPA the NRI himself it is required to attend the register office while selling the property. The buyer is required to make TDS as per Section 195 read with Income Tax rates specified in Section 112 of the Income TAx Act, 1961.

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Heena Bashmakh

Heena Bashmakh (Querist)

18 January 2016 The Purchaser is sending agreement through courier for signature and it is not registered property.

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