Looking to finalize a property deal from a seller who is settled outside India
Hi.
1. We are buying an apartment from a citizen of Singapore and the deal is worth more than 50 lakhs.
2. We are getting the deal financed through a bank.
3. He (Mr X), and his wife, Mrs. X - are co-owners of the property. He bought the apartment sometime around 2014.
4. Mrs. X is an Indian citizen and she has an Indian passport.
5. Mr X has a NRO bank a/c, but his wife has an Indian resident bank account. Both have PAN cards and Aadhar cards.
6. Mr. X is suggesting us (and the bank) to transfer the entire sale amount to his wife, Mrs. X's Indian bank account. Mr. X say's he would submit a no-objection certificate to the bank stating that he does not have any objection if the bank transfers the money to Mrs X's account. By doing this, he says, we need to deduct only 1% TDS on the sale amount.
Need your advice on how much should be the TDS %.
Asked 4 years ago in Property Tax
Thanks for your very insightful responses.
1. My understanding is that as a buyer I "must" deduct 20% as TDS on the "sale amount". Please correct me if I am wrong.
2. If I deduct 20% (+ cess etc. that comes to 22.68%) of LTCG, and pay to the Tax department, will I will be in trouble?
3. To be able to pay 20% of LTCG, we need to fill form 13 and get a certificate from the IT department with a confirmation that I can deduct only 20%(+) of LTCG. Is this correct?
Asked 4 years ago
