Buying residential property from NRI

Hi, pls suggest applicable compliances under Rule 37BB and Form 15CA & 15CB in below case

- Indian Resident buying residential property from an NRI

- payment of the consideration is to be done in INR into the NRO account of the seller.

Pls suggets

Replies (6)
Quick Summary
This discussion clarifies compliance requirements when an Indian resident buys residential property from an NRI, with payment made in INR to the seller's NRO account. Key points include the NRI seller needing a TAN, potential application for lower tax deduction, and the necessity of filing Form 15CA even for INR transactions. The forms are generally required when an NRI repatriates funds abroad, but the consensus here is to proceed with filing for domestic INR payments as well.

File form 15CA

1. The NRI seller has to obtain TAN No

2. He has to apply to IT authorities in case he desires to pay less tax by proposing to invest in Capital gain acts or Reserve bank Deposits. If not then you have to deduct full tax of 33% on value( pl check exact  %).

3. Once NRI uploads TDS return then it will reflect in your 26AS.

4. You can complete the registration and 15C etc 

 

The question is - as the payment is done in INR whether form 15CA 15CB need to be filed?

Yes file 15CA

The reading states "remittance" , "authorized dealers", etc. These are typically linked with transactions in foreign currency. Here the payment is in INR only (into the NRO a/c held in India by NRI) no foreign currency involved. Even than, 15CA to be submitted?

Or isn't it these requirements will be applicable whenever NRI takes out money from his NRO account to outside India.

For taking money to NRI place of residence he needs 15CA forms to be be submitted to the bank based on which bank will transfer money from NRO to NRI act of an NRI

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