Registration of property

This query is : Open

Rasheed Mohd Abdul (Querist)
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03 December 2024 Dear Sir,

I have been seeking guidance through this forum on my issues related to Finance, Tax etc.,
I am extremely contended with the response and the clarity I am provided.

Sir, I need clarification on the following queries/subjects/points:

My son is NRI and purchased a flat from the reputed Corporate builder in India. Further details/inputs are furnished hereunder to enable you to guide me.

1]Date of purchase(Sale agreement) of Flat in October 2021.
2]Total cost of the Flat including Stamp duty towards registration:Rs.198 lacs
3]Loan sanctioned by the BanK based on his income abroad:Rs.132 lacs(present outstanding)
4]Equity Rs.66 lacs
5]He doesn’t have any income in India

Now he wants to sell the flat and the Sale price is Rs.228 lacs

Prospective buyer is also taking a loan from a bank for the amount. Buyer’s bank will release Rs.132.00 lacs directly to the my son’s loan account and the balance amount Rs.96.00 lacs for the credit of my son’s account.
Seeking Guidance on the following points:
1]Applicable LTCG is @12.5% on Rs.30.00 lacs i.e. Rs.375000.00 + Cess+Surcharge if any. No indexation option since he is NRI.

Please confirm whether the above is correct?

2] Is the TDS @20% is to be deducted by the buyer, is it on Rs.228.00 lacs(being sale consideration) or on Rs.96.00 lacs(being the amount credited to my son’s account).
Alternatively deduct only the amount equal to Tax on LTCG i.e.(capital gain portion i.e.Rs.30.00 lacs) that is Rs.375000.00 lacs. He has no income in India and not paid any taxes.

My son wishes to get the amount repatriated to his country[USA].

3]Is there any way to exempt/reduce the TDS within the frame work of law as the TDS on Rs.228.00 lacs will be a huge sum and to close the loan, he has to pay out of the difference amount he gets i.e.Rs.96 lacs?

Kindly guide.
Regards,

M A Rasheed