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Income Tax obligations when property is purchased /sold by NRI

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bujjulu

e-TDS + IT return filer Hyderabad

333 Points Posted on 23 October 2023

Income Tax obligations when the property is sold for 2-3 crores by NRI.

With that money, the same NRI purchases another property of around the same value ie. 2-3 crores.

What are the obligations, he has to fulfil?

Replies (4)

Quick Summary

This discussion clarifies the income tax obligations for Non-Resident Indians (NRIs) when selling and purchasing property in the UK. If an NRI sells a property, the buyer is responsible for deducting TDS and filing returns, provided the seller has a valid PAN. However, if an NRI buys property, they must deduct TDS at 1% on the sale value, file Form 26QB, and issue Form 16B. For NRIs selling property, a regular TAN application and TDS filing route is necessary, and applying for a lower TDS certificate can help minimise blocked funds and potential refunds.

Eswar Reddy S

CFO- at NHTF

15022 Points Posted on 25 October 2023

If NRI Sold the house and he has valid PAN then it's purchaser headache to deduct tds and file tds returns.

No obligation on NRI

If NRI bought the property then he or she has to deduct tds at 1% on sale value and fill form 26QB and issue form 16B