If You Are Buyer Buying Property From NRI

If you plan to buy a property from a non-resident Indian (NRI), you must know that the process is complicated. More stringent rules are imposed. As a buyer, you have been while making such deals. Tax has to be deducted before making the payment to the seller which is commonly referred to as TDS (tax deducted at source). Tax should be deducted only on sale price and not on the capital gains, Hence buyer is liable to deduct TDS on entire sale proceeds. Hence advisable to NRI seller, get lower rate TDS certificate in advance!

Certain things to consider before buying a property from an NRI i.e. the Non-Resident India. So, don’t fall in wrong deal as we here list the essential things every home buyer should know before purchasing a property from an NRI:


Proceedures for making payment to NRI

  • Apply TAN No. of Buyer.
  • Deduct TDS.
  • Pay TDS by 7 day of following month.
  • File for 27Q within due date of relevant quarter
  • Issue form 16A.
  • Get CA Certificate in form 15CB, if NRI do not provide certificate u/s 197.
  • Mail us at India@globaltaxation.in