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NRI status fraud

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Himanshu

Mba

30 Points Posted on 26 September 2023

I am purchasing a property from a person.

He works in Australia and has Australian citizenship also but is a person of indian origin.

He has indian aadhar and pan card.

He is saying that he files ITR as resident of india and will also be doing same for AY 2024-25. He is telling me to deduct tds @ 1% as he is resident.

Now I cannot verify that whether he will be staying in India till March 2024 or not to fulfill the resident condition as per section 6 of income tax act

So is there any way by which I can protect myself from Income tax notice if in future he files return as nri?

Replies (5)

Quick Summary

A buyer is concerned about potential tax implications when purchasing property from an individual who claims Indian residency for tax purposes while working abroad. The seller, an Australian citizen of Indian origin, has Indian PAN and Aadhar cards and states they file as a resident. The buyer needs to know how to verify the seller's residency status and protect themselves from future Income Tax notices if the seller later declares NRI status, potentially leading to higher TDS deductions.

Himanshu

Mba

30 Points Posted on 26 September 2023

Please anyone please reply

I need help please

Pratap Reddy

Accountant

41 Points Posted on 26 September 2023

You can check his status under 206ab compliance
in compliance portal

Himanshu

Mba

30 Points Posted on 26 September 2023

Do i need his login id and password for this?

Himanshu

Mba

30 Points Posted on 27 September 2023

If i take an affidavit from him which will say that he is resident for this financial year then will I be able to quash the tds demand notice if I receive in future?