Tds obligations on a resident buyer of property owned by nri
C.J.Sriram
(Querist) 26 November 2017
This query is : Resolved
What are the steps for compliance by a Resident Buyer of a property owned by NRI. Should he first obtain TAN or is it exempted. What other steps and rate of TDS are applicable.
P. Venu
(Expert) 27 November 2017
Please post the material facts.
R.Ramachandran
(Expert) 27 November 2017
The NRI who desires to dispose of his immovable property, if he already does not have a PAN, has to apply for and obtain PAN. The resident while making the payment of consideration (which is Rs. 5o lakhs or more) for purchasing the immovable property has to deduct 20% TDS.
The Resident unless he is already having a TAN need not obtain one. But, it will be enough, if he deducts TDS and remits to the Government against the PAN of the Seller.
C.J.Sriram
(Querist) 27 November 2017
Thanks to Mr.P.Venu expert for his inputs. The Buyer has PAN number, is a resident, individual, Male. He does not have a TAN number. He is buying a residential property from an NRI owner,who has a PAN number. Should the buyer apply and take TAN now under current rules. Next, what % of tax is to be deducted from the Sale price. Under which head and challan he should remit it. Kindly elicit on the buyers obligatiion on the Purchase transaction, where the seller is an NRI. Thanks in advance Mr.P.Venu.
Dr J C Vashista
(Expert) 28 November 2017
What is the dispute, if it is not a question paper on taxation?
C.J.Sriram
(Querist) 28 November 2017
No disputes sir. Needed clarifications on the procedures, if you could enlighten pl. regards
