Sale and Purchase of property by joiner ownership (one person is NRI and another person is Indian Resident)

- Please provide the below details in respect to 2BHK flat:

1. Date of Purchase

2. Percentage of share of investment of each joint owners 

3. Any loan obtained for purchase of the flat?

- Buyer is liable to deduct TDS@1% in the hands of resident seller and 12.5% +surcharge + Ed.cess @4% in the hands of NRI seller. Applicability of surcharge would depend on the amount paid to the NRI seller. In the hands of NRI seller, TDS would be deducted on the sale consideration amount. For lower or NIL TDS deduction you can obtain certificate from the jurisdictional AO

- Buyer is liable to file TDS return and share Form 16A and 16B with the sellers 

- Purchase new 3BHK house within 2 years from the date of sale of 2BHK to obtain the benefit of exemption u/s 54

- In respect to 3BHK, deduct TDS in the hands of seller as per their residential status and percentage of share of investment of each joint owner in the house property

Please confirm stamp duty, registration charges and any other fees from the sub-registrar office or concerned advocate

For detailed discussion you may opt for phone consultation

- In case of 2BHK sale, entire TDS will be deducted in your hands. TDS rate is 14.30%. Buyer has to obtain TAN for TDS deposit and filing of TDS return

- In case of 3BHK purchase, entire TDS will be deducted in the hands of brother in law

A) Selling your 2BHK (₹65L) — buyer’s TDS

• On your (NRI) share: Buyer must deduct TDS u/s 195 at 12.5% basic on LTCG (held since 2016 ⇒ long-term) + surcharge (as per total income) + 4% cess.
  If the buyer can’t compute capital gains, they typically deduct on the gross consideration unless you obtain a lower/NIL TDS certificate u/s 197. 

• On your wife’s (resident) share: Buyer deducts 1% u/s 194-IA only if her individual consideration ≥ ₹50L. With a 50:50 split (₹32.5L each), no 194-IA TDS for her. (Threshold is per seller.) 

• Compliance: 195 TDS needs buyer TAN + quarterly Form 27Q; 194-IA (if triggered) is via Form 26QB (no TAN).

B) Buying the 3BHK (₹75L) from resident co-owners

• Sellers are residents ⇒ section 194-IA @ 1% applies per seller’s share only if that seller’s individual consideration ≥ ₹50L. With two sellers at 50:50 (₹37.5L each), no TDS. If any one seller’s share crosses ₹50L, deduct 1% on that seller’s share and file Form 26QB for each buyer–seller pair.

C) Stamp duty & registration (Greater Noida, Uttar Pradesh)

• Stamp duty (joint Male+Female): ~ 6.5% of higher of circle rate/consideration.

• Registration fee: 1% of value.
  (UP/Noida 2025 schedules reflect 7% male, 6% female, 6.5% joint M+F; registration 1%.) 

D) Tax planning tip

• Since the 2BHK is long-term, you can claim sec. 54 exemption by investing your LTCG into the new house within timelines. This doesn’t change buyer’s TDS, but supports your final tax return; consider u/s 197 LDC so buyer deducts only on estimated gains. (Work with a CA to compute indexed cost & gain and apply online.)

What you may confirm to fine-tune TDS split

• Documented ownership shares of both transactions. If not specified, many buyers assume 50:50; TDS must follow actual shares.