I am buying a property from an NRI seller. I am buying the property on joint basis with me and my wife as owners, however, I will be making all the payments. I have a joint bank account with me and my brother as co-owners for the account. My brother who is the joint owner for my bank account has nothing to do with this sale transaction. Is it ok if I make the payment to the seller as well as TDS payment to government thru online transfer from my joint account. Are there any restrictions?
In addition, the property sale value is above > Rs 50 Lakhs I don't have any other TDS transaction and will prepare and submit TDS returns for my PAN and TAN accordingly.
There are no restrictions as such but in future it could be difficult to say that this was your money out of joint account that you invested.
In case of non-resident seller value of property does not matter. TDS needs to be deducted and deposited.
Hope you find the information helpful, if yes do rate if 5 and provide your valuable feedback for my improvement.
Thank you.
- Do purchase payment from Individual saving bank account
- Rate of TDS is 22.88% on sale consideration (assuming sale consideration is < 1 Cr) unless lower/NIL TDS deduction certificate obtained from AO
- File Form 15CA & 15CB
- File TDS return and issue TDS certificate to the seller
For detailed discussion you may opt for phone consultation
Hello,
Joint Bank Account: Using a joint bank account for the payment is generally acceptable, even if your brother is not directly involved in the sale transaction. However, it's important to ensure that the funds used for the property purchase come from your own sources and not from your brother's funds. This will help establish that the funds used for the transaction belong to you.
Form 15CA & 15CB: Form 15CA and 15CB are required for making remittances to non-residents. Form 15CA is an online form that captures the details of the remittance, while Form 15CB is a certificate issued by a chartered accountant certifying the nature and purpose of the remittance. These forms need to be filed before making the payment.
TDS Return and Certificate: After deducting and depositing the TDS, it's necessary to file the TDS return and issue a TDS certificate to the seller.
Hope you find the information helpful. You are free to contact me for further discussion.If you could spare two minutes of your time to write a review, It would be really grateful and very happy to read it.
Thank you.
Shubham Goyal
Hi,
The amount of property does not matter if it exceeds Rs. 50 Lakhs when the purchase is from NR. The TDS needs to be deducted u/s 195 @ 22.88%.
You need to obtain the TAN and file form 15CA-CB as well. We can assist with the same.
Regards
Hello Sir/Madam,
Hope you are doing well!!
in international transactions, transactions from joint bank account generally not recommended, receiver bank asking for KYC of sender and make both the account holder as party of the transaction, in one of our case our client sell his shares to a London base person and the london base person want to transfer the amount from his joint account then transaciton stucked in banking mechanism for around 15 days for seeking clarification.
thus as per my view if you have a seperate bank account then its recommended to transfer amount to individual saving account then to the seller of the property.
for TDS yes we have to apply for TAN and then file TDS return and thereafter surrender the TAN.
othereise seller can provide you nil TDS deduction certificate for non deduction of TAX.
