Purchasing property from an NRI

Dear Sir / Madam,

I'm in a bit of a sticky situation here where I'm purchasing a property (over ₹50 lacs) from an NRI. He has applied for a Lower TDS certificate which has been received as well. The part that I'm concerned about is that the TDS certificate is against his name whereas there are 3 owners in the property viz. the seller (NRI), his wife (NRI) and mother (Indian resident). If I pay only into his account, will that resolve the situation?

How do I treat this and move ahead, please help.

Thank you in advance!

Replies (4)
Quick Summary
This discussion addresses the complexities of purchasing property from an NRI seller who has multiple owners on the title. The buyer is concerned about TDS implications when the lower TDS certificate is only in the NRI seller's name, despite his wife (also NRI) and mother (Indian resident) being co-owners. The advice clarifies that TDS must be deducted on payments to each co-owner, and a lower rate certificate can be applied if furnished by a co-owner. Payment can be made to a single co-owner's account if all co-owners agree to this arrangement and the lower rate.

TCS is applicable for buying a property from NRI
TDS will be deducted on payment made to each co-owner. Apply lower rate to co-owner who furnishes lower rate certificate.

Thank you for your response. So, does that mean I can pay into only one co-owner's account even though there are 3 co-owners? And apply the lower rate?

You can if all co-owners agree. 

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