We are in the process of purchasing a resale flat (ready-to-move), however the seller has not registered the flat in his/her name, the flat is un-used and hasn't been officially handed over from the builder. The transaction value is > 50L.
The seller had exercised an agreement to sell with the builder with an agreement value of say X. On top of the agreement value, payments towards club house, electricity connection, water connection etc ie Y were also made by the seller towards the builder. At this point all dues have been cleared by the seller except the TDS amount on the agreement value X, however the seller has not actually made the TDS payment to the government.
Now, we had a discussion with the seller and builder, arrived at the terms and executed a tripartite assignment agreement with the builder, seller and us, which basically transfers the booking to us. The agreement makes it clear that the entire sale consideration Z, should be paid to the seller with a 1% TDS deduction of the total consideration. The sale deed would be executed directly between the builder and us, with the seller being a consenting witness.
Also the Seller says that he is an Indian citizen and moved to US just 2 months ago. What documents do I procure to assure that
He is non NRI and deduct 1% TDS only.
Also the builder clearly says that The registration of the unit will be done on the agreement value which they has sold and they shall not be considering new value where new buyer/assignee is buying from assignor for registration. Will this cause an issue in future
And I will have to pay more capital gain tax if I resell this property.
