Sale of NRI property
My daughter has an apartment in which my, the father’s, name was added as joint holder, as a kind of nominee for inheritance purpose. This is because she is not married and has no family or children. She later became an NRI. Her payment contribution is (i) 100%, (ii) duly mentioned in her ITRs and (iii) supported by her bank statements showing all payments from her account.
But as per procedure, she is applying to the ITO for a Certificate to be issued in the name of the prospective buyer indicating the rate of TDS to be deducted by him (although no Capital Gains are expected).
Problem
If the buyer wants a bank loan, will the bank consider me a joint owner as per sale deed. Can the bank insist on the buyer to deposit the sale proceeds, half in her a/c and half in my a/c , and deduct TDS separately, which will contradict the IT Department’s requirement to deposit NRI property proceeds only in the NRO a/c, since my daughter’s contribution is 100% and mine is 0 %.
If the bank insists and all buyers want a loan, what is the way out – to remove my name by a relinquishment deed or any other way?
CAclubindia
