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NRI Selling property in India

26 January 2023

My assesses buying property from an NRI is he liable to deduct tax u/s 194 IA...??
NRI doesn't hve any PAN in India in this case what is the procedure to deal with it.....??

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6 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177824 Points)
Replied 26 January 2023

No. He is liable to deduct TDS u/s. 195 of IT act.

Seller needs to obtain PAN as he is required to file ITR for capital gain assessment.

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CA Raj Doshi (Practising CA) (8924 Points)
Replied 26 January 2023

PAN is a must for the NRI seller. It's easy to apply and also ask seller to open an Indian Bank Account for.

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MAYUR MINAJGI (54 Points)
Replied 26 January 2023

Thanku so much Sir...🙏

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177824 Points)
Replied 26 January 2023

You are welcome. ...

CA Raj Doshi (Practising CA) (8924 Points)
Replied 27 January 2023

Also, in case of lower deduction,please not that the officer only prescribes the tax rate. Surcharge rate and cess shall be additional.

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sabyasachi mukherjee (27574 Points)
Replied 27 January 2023

Obviously it's applicable pan is based in India. property situated in India . tax is liable to be paid on property situated in India when there is a transfer of capital asset.
Sec 195 of income tax act is applicable.