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TDS on joint property of NRI husband and indian wife - reg

Tax queries 372 views 1 replies

K Subramanian

Engineer

0 Points Joined March 2025

I am a resident indian and planning to buy a joint property from a seller in which one is NRI and the other is resident indian. I understand that the buyer has to deduct TDS and pay it. Property bought by seller – 100 lakhs in 2021 Peoperty sold by seller – 120 lakhs in 2025 For the above rates, how much i have tp pay the TDS if the NRI seller get low tax certificate for 3 %. How much TDS have to pay for the indian resident. I am planning the my property with bank loan along with my wife. Is it that myself and wife has to pay TDS separately or i alone can pay. Thanks

Replies (1)

Rama chary Rachakonda

Master in Accounts & high court Advocate

9586 Points Joined December 2011

Buying a joint property involves complex tax implications, especially when one of the sellers is an NRI. I'll break down the TDS calculation and other requirements. TDS Calculation: *NRI Seller (3% TDS):* 1. *Capital Gains*: Calculate the capital gains for the NRI seller: Capital Gains = Selling Price - Purchase Price = ₹120 lakhs - ₹100 lakhs = ₹20 lakhs 2. *TDS*: Calculate the TDS at 3% (as per the low-tax certificate): TDS = ₹20 lakhs x 3% = ₹60,000 *Resident Indian Seller:* 1. *Capital Gains*: Calculate the capital gains for the resident Indian seller: Capital Gains = ₹20 lakhs (same as above) 2. *TDS*: Calculate the TDS at 1% (standard rate for resident Indians): TDS = ₹20 lakhs x 1% = ₹20,000 Payment of TDS: As the buyer, you'll need to pay the TDS for both sellers. Joint Property Purchase with Bank Loan: Since you're purchasing the property jointly with your wife, you'll need to consider the following: 1. *Single TDS Payment*: You can make a single TDS payment for the entire property purchase. 2. *TDS Certificate*: Ensure you obtain a TDS certificate (Form 16B) from the seller, which will contain the details of the TDS deducted and deposited. Consult a tax professional or chartered accountant to ensure accurate TDS calculation, payment, and compliance with tax regulations.

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