Payment to NRI in Either or Survivor account

I have purchased a flat for 86 lacs.....there were two sellers son(NRI) and mother(Resident Indian).....I have paid them equally i.e. 43 lacs each


I have deducted the tds differently for both the sellers as per their residential status. For Son(NRI) I deducted tds as 20.8% on 43 lacs and for mother I deducted 1% on 43 lacs.


But I have made payment to them using self funding and home loan... in sellers either or survivor account (where mother is primary account holder)......using separate cheques in mother and son name.


So my question is, can I make payment to NRI in their either or survivor saving account where his mother is primary account holder or NRO account is mandatory. I have deducted his tds as per NRI status.

Replies (16)
Quick Summary
This discussion explores the validity of making payments to an NRI seller via an 'either/or survivor' account where their resident Indian mother is the primary account holder. The buyer deducted TDS based on the NRI status of the son and the resident status of the mother. While the bank issued Demand Drafts (DDs) favouring each seller, mentioning the survivor account, the core question is whether this is acceptable or if an NRO account is mandatory for the NRI. The consensus suggests that as long as TDS is correctly deducted and the buyer obtains a receipt or confirmation from the NRI, their responsibility is fulfilled, and the NRI is accountable for depositing funds into their chosen account.

Pay Cheque to NRI son & deduct TDS accordingly. Let him deposit the amount in his NRO account.

I have taken the bank loan....bank had made the DD in favor of NRI for his either or survivor account (in which mother of NRI is primary account holder)

Get the receipt from the NRI son for payment by mode of the DD (drawn in his favor), Your responsibility is over.

NRI son has mentioned the account number in which he wants money (that account is either or survivor account where his mother is primary account holder)......does this email work as receipt?

Also, NRO is not mandatory in this case right? This either or survivor account will work...right?

Why are you so obsessed with his account? 

He has to deposit the DD by himself and not by you. You have given him DD and collected receipt, that's all. It is his responsibility to deposit it in his proper account and has liability over his act.

Thanks for the explanation sir.

You are welcome.   

Hi Dhirajlal Ji,

Bank has made the DD in favor of both the sellers separately. DD has seller name along with account number of their either or survivor account in which NRI is secondary account holder and mother is primary account holder. 

Seller1(NRI) DD: NRI name and either or survivor account number is written on it

Seller 2(Mother Resident indian) DD: Mother name and either or survivor account number is written on it

Is there any problem with above payment method as DD was drawn in favor of NRI where his either Or survivor account is mentioned (in which NRI's mother is primary account holder who is also resident Indian)

As such no, as you have deducted TDS as per sec. 195 IT act. Better get a letter from son, that the DD should be drawn to the said account having no. ------

I had a call with NRI Son....he only told me that he would be depositing money in either or survivor account....also, he had written the same to me over the mail as well....this mail will work right ?

Also, for tds deduction I had considered equal share of sellers (between Seller1: NRI Son and seller 2: Resident Mother) in the property as nothing was mentioned on their sale deed. Is this fine ?

Yes, seems to be all right.

Originally posted by : Dhirajlal Rambhia
opening quote Yes, seems to be all right. closing quote

This reply is for which question:

1. We can consider equal share in property for tds deduction when share is not mentioned in Sale Deed

Or

2. Confirmation over the mail from NRI that he would be depositing DD in his either Or survivor account (where he has mentioned the exact account number)

For  second part .

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