NRI selling property

I am a NRI planning to sell a flat. When I did the calculation of indexation based on purchase and sale prices and years, there seems to be no tax liability. But I was given to understand that there may be TDS applicable wherein the buyer has to withhold tax if the sale price is higher than 50 lakhs. In my case the sale price is lower than 50 lakhs so I am assuming there is no TDS. Please confirm. Also, I need to obtain 15CB in order for me to repatriate the sale proceeds. Currently I hold a SB account but I need to change it to NRO (with linked NRE), but I am not sure if I should convert the account before the sale or after the sale. Finally, if there is no tax incidence (based on indexation), do I need to obtain a No tax liability certificate from the assessing officer?
Asked 3 months ago in Capital Gains Tax from Canada
Hi Sir,

The limit of 50 lacs is for resident. For non residents there is no threshold limit. If you wish TDS not to be deducted, you have to take no TDS Certificate from the assessing officer.

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,

There are two different tax aspects. One is the 20% tax on the capital gains that arises, which you say is NIL since you are either investing in another property, or there is a long term capital loss.
Secondly, is the 1% tax deducted at source by the buyer at the time of making payment to a resident seller, if the value of the property is more than 50 lakhs. In your case, the sale price is less than 50 lakhs, and you are a non-resident. Hence, this is not applicable to you. 

Unfortunately, since you are a non-resident, it is compulsory for you to obtain a no-objection certificate from the assessing officer.

If you are an NRI, then it is advisable to convert your bank account. 

Regards,
Keerthiga Padmanabhan
M.Com., CA, LL.B
Keerthiga Padmanabhan
CA, Greater Mumbai
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Yes if the registered value of the property is less than 50 Lakhs then TDS provisions are not applicable.

You can take 15CA and 15CB and transfer the funds outside India. No tax liability certificate is required as 15CA is generated online.
Shyam Sunder Modani
CA, Hyderabad
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Since you are a Non resident, Rs. 50 lakhs limit is not applicable and TDS shall be applicable on sale value irrespective of the fact whether you have capital gains tax liability or not. You can claim refund later if you are not chargeable to tax.

Alternatively, you can obtain a No TDS certificate from your Assessing Officer.
Lakshita Bhandari
CA, Mumbai
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Hi,

TDS will not be applicable if sale value is below Rs. 50 Lakhs. However, that section (194IA) is applicable only if the payment is being made to a Resident Seller. Since you are an NRI, the applicable TDS section is 195. So, I would suggest to take a Certificate u/s 197 for non-deduction of TDS by showing the Tax calculations to your Assessing Officer.

Regarding 15CB, that's the certificate to be obtained by the person who is making the payment (i.e the Buyer). So, you need not worry about 15CB

Pradeep Bhat
CA, Bengaluru
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These forms are to be filed by the remitter ( buyer of the property) for any payments made to a NRI. On production of these forms, bank passes such payments.

In your case, where your saving account is still a resident account, the bank would not have raised objections.

Also, check with the functioning of your savings account as many resident accounts of NRIs have been blocked due to deficiency in linking Aadhaar details.

The buyer of your property is at default for non deduction of TDS and non submission of the forms.
Lakshita Bhandari
CA, Mumbai
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Hi

You will have to submit both Form 15CA and 15CB. A chartered accountant will prepare and sign the Form 15CB, while you’ll prepare Form 15CA.

Regards,
Keerthiga Padmanabhan 
M.Com., CA, LL.B
Keerthiga Padmanabhan
CA, Greater Mumbai
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Hi,

You can contact any of the chartered accountants on this portal or any other accountant, of your choice, from India. Fees would depend on the accountant. 
The forms should be completed in a day or two.

Regards,
Keerthiga Padmanabhan 
Keerthiga Padmanabhan
CA, Greater Mumbai
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Yes, we provide these services.

Essentially, you should have get these done before transfer of sale proceeds. Since you haven't done it, you should get it done asap.

Best regards,
Lakshita Bhandari
lakshita.bhandari@gmail.com
Lakshita Bhandari
CA, Mumbai
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Yes, we can help you in both 15CA and CB.

Please contact me at caabhishekdugar@gmail.com for fee details.
Abhishek Dugar
CA, Mumbai
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