Tax on Buying an unregistered property from nri

Tax on Buying an unregistered property from nri

We are buying a property from an nri. The property is not registered. Property just got NOC.

We will be paying 90% to owner nri and 10% to builder. There will be triparty agreement - transfer agreement between seller, builder and us. We will be paying transfer fees to builder. The sales deed will be between us and builder.

How much tax needs to be deducted in such a case?

Asked 6 years ago in Property Tax

In case of sale of property by NRI, you will have to deduct 20% plus applicable cess and surcharge TDS on the sale price of the property if capital gain is long term capital gain.

In case of short term capital gain, TDS will be 30% plus applicable cess and surcharge irrespective of income tax slab of NRI.

Further, if the property value is more than 50 lacs, you will have to deduct TDS @1% for the payment made to builder.

Please feel free to call/revert in case you need more clarity.

Thanks and regards

Abhishek Dugar

CA CS B.Com

Abhishek Dugar

CA, Mumbai

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Hi,

Since you are buying the property from a NRI, you will have to deduct 20.6% /30.9% TDS on the sale price of property depending on whether it is long term capital gain or a short term capital gains.

Hope that clarifies.

Regards,

Nikhil.

Nikhil Khanna

CA, Mumbai

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Firstly, you need to know whether the capital gains of the seller are short term or long term. The date of allotment shall be considered as date of acquisition for the seller.

In case of LTCG, deduct 20% ; 30% in case of STCG.

Lakshita Bhandari

CA, Mumbai

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