TDS ON IMMOVABLE PROPERTY - PURCHASE FROM NRI & RESIDENT INDIAN

• File separate forms for each of the 3 co-owners (1 for the resident, 2 separate ones for the two NRIs).

• Declare the respective 33.33% proportionate share value of the property consideration in each form, applying the correct TDS rates (1% for the resident; applicable NRI capital gains/TDS rates for the NRIs).

Form 141 – TDS on Property Purchase (1 Buyer and 3 Sellers)

Where a property is jointly owned by 3 sellers (1 Resident Indian and 2 NRIs), each holding 33.33% ownership, and there is only one purchaser, the filing procedure is as follows:

1. Schedule B: File for the Resident Indian seller.

2. Schedule E: File for both NRI sellers together, provided TDS is deducted in the same month.

3. Property Value: Report the full property sale consideration (100%) and stamp duty value in both schedules, even though sellers have separate ownership shares.

4. TDS Calculation: Deduct TDS only on each seller's proportionate share (33.33%), not on the entire property value.

5. TDS Rate: Generally 1% for the resident seller (subject to conditions), while applicable non-resident TDS provisions apply to the NRI sellers.

Example: If the property value is ₹1.50 crore, each seller's share is approximately ₹50 lakh. The full ₹1.50 crore property value is reported in both schedules, but TDS is calculated separately on each seller's share.

Conclusion: Generally, two Form 141 filings are required: one under Schedule B and another under Schedule E, assuming both NRI deductions occur in the same month.

Form 141 – One Buyer and Three Sellers (1 Resident + 2 NRIs)

If a property has 3 sellers (1 Resident and 2 NRIs), each holding 33.33% ownership, and one buyer, Form 141 should generally be filed as follows:

1. Schedule B: For the Resident Indian seller.

2. Schedule E: For both NRI sellers (if TDS is deducted in the same month).

3. Property Value: Report 100% of the total property consideration and stamp duty value in both schedules.

4. TDS: Calculate separately on each seller's proportionate share at the applicable rate.

Example: For a property worth ₹1.50 crore, report the full ₹1.50 crore in both schedules, but calculate TDS on each seller's approximately ₹50 lakh share.

Conclusion: Generally, 2 Form 141 filings are required—one under Schedule B and one under Schedule E.