Get 3 Yrs of CCI Pro Membership at Greater Value. Subscribe Now!

TDS on sale of property by joint NRI holders

307 views

Save Share

Prasad Balakrishnan

31 Points Posted on 06 May 2022

A jointly (husband and wife)held apartment is being sold by NRI to resident Indian who are buying it jointly( Husband & wife). TDS on this has to be deducted and remitted. The question is should both the buyers individually have to deduct TDS on the half value of property on behalf of the NRI joint holders and remitt the same in individual PAN and generate Form 16 for each.

Replies (3)

Quick Summary

When jointly held property owned by NRI sellers is purchased by a resident Indian couple, both buyers are responsible for deducting Tax Deducted at Source (TDS). Each buyer must deduct TDS on their half share of the property value and remit it using their individual PAN. This process requires the use of Form 27Q, as it falls under Section 195 for payments to Non-Resident Indians, rather than Form 26QB.

Eswar Reddy S

CFO- at NHTF

15022 Points Posted on 06 May 2022

Yes Both have deduct Tds and issue form 16B to the extent of their share in the property.

So 4 persons must have PAN .

But check whether 26QB accepts the payment if you select the seller is NRI