banner_ad

OCI Income Tax liability

Tax queries 464 views 5 replies

Hi,

My brother is a OCI and living abroad. He bought a land when he was an Indian citizen (4 to 5 years ago). Now he is thinking of disposing the land and considering the following options. Can you suggest and answer the below questions? 


1) He gifts the land to me. I will sell it. I think there is no gift tax. Right? When I sell the land, how is the tax calculated?

2) He sells the land directly. How much is the tax percentage in this case? How is the indexation calculated?

Is it ok if the seller and buyer skip the TDS, and the seller pay the tax directly to the IT department?
 

Best Regards,

Raju
 

Replies (5)

The tax liability will be same in both the cases, except TDS deduction by Buyer. In first case there will be additional liability of stamp duty & registration charges.

TDS liability lies over buyer, seller can offload the liability in buyer's name.

What is the long term capital gains tax % in both of these cases?

TDS deduction by buyer is only applicable for case 2. Right? Is the TDS on profit amount or sale amount? Should we get the TDS certificate from the buyer at the time of registration and then claim the return when filing the IT returns with the help of a CA?

 

In both the cases it will be 20% + cess.

TDS in first case will be 1%, only if the value of the property be Rs. 50L or more.

TDS rate on NRI/OCI seller will be 20%+ surcharge, whatever be the property value.

Seller can apply for lower deduction of TDS with his jurisdictional ITO.

Yes, buyer will issue tax deduction certificate in form 16B.

Oh. Tax is (20% + cess) on the profit. But TDS is (20% + surcharge) on sale value. This sounds little strange.

What happens if the buyer doesn't take the responsibility of TDS and issue form 16B to the seller (OCI)? Should the seller file his income tax and pay (20% + cess) on the profit directly to the IT department? 

 

1. The difference if any, gets adjusted during assessment of the return. Excess if any, gets refunded.

2. Buyer has to deduct TDS, otherwise he can be penalized. (unless seller procures 'No Tax Deduction Certificate' from his Jurisdictional ITO.)


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
18 May 2026
MIS Executive

Primarc Pecan Retail Limited

Mumbai

B.Com

View Details
Company
08 May 2026
CHARTERED ACCOUNTANT

SHAH LADHA AND ASSOCIATE

Ahmedabad

CA

View Details
Company
23 May 2026
Article Assistant

Geeta Manchanda & CO.

New Delhi

CA Inter

View Details
Company
22 May 2026
Audit assistant

Displayandbeyond

Mumbai

CA

View Details
Company
01 June 2026
Audit, Taxation & Compliance Executive

R P S K & Associates

Nashik

CA Inter

View Details
Company
ARTICLESHIP 27 May 2026
CA Article Trainee

Rahul Dang & Associates-Chartered Accountants

Pune

CA Inter

View Details
Company
14 May 2026
Senior Accounts Executive

Karan Gupta & Co.

New Delhi

Graduate (Any)

View Details
Company
14 May 2026
Financial Analyst - Remote Finance Expert

HiringBridge

Ahmedabad

CA

View Details