Must Know Facts If You Are Buying Property From An NRI
Must Know Facts If You Are Buying Property From An NRI (Dreamstime) The taxman may come after those who bought property from non-resident Indians (NRIs) and failed to deduct/deposit they are obliged to. Earlier this year, officials of the Central Board of Direct Taxes (CBDT) had been directed to carry out surveys to detect tax evasion. Officials had also been directed to collate data of property transactions and match it TDS (tax deducted at source) records to find out the possible mismatches. Interestingly, in several cases these “defaulters” may face the wrath of the taxman without having intentionally withheld anything ─ tax laws related to property purchases where the seller is an NRI are complex, and must strictly be carried out with the help of an expert only. Here is a primer for those buyers who are planning to buy a property that belongs to an NRI. Buyer is responsible for deducting TDS Only one per cent of the deal value is deducted by the buyer as TDS whe...