Enquire Now
Free consultation

NRI SERVICES

Travelling to India for Buying or selling of property is most certainly straining for working NRI/OCI professionals and business owners.

We are a strong team of Foreign Transaction Advisory Specialists bridging clients’ problems with Ideal solutions for investments and disinvestments in India while they are based in a foreign country. Our clients can be NRIs or PIOs or OCIs or other foreign citizens.
Free consultation

Constraints NRI’s usually face are

Always under Time Pressure
Possible unproductive trips to India
knowledge of Compliances & Tax management

Service Areas

Tax Advisory & Compliance

Providing tax advisory to clients seeking clarity on tax on sale of property, computation of Long-term or Short-term capital gain tax, or to know all tax related compliance etc. Some of the key questions (not an exhaustive list) that we can help you with are.

- What is various tax compliance on buying or selling of property?
- What are various taxes and rate therein?
- What is TDS rate on sale of property for NRI?
- What are the various ways to save tax on sale of property for NRI?
- Different timeline for tax related compliance?
- CA Services for Filing 15CA 15CB Services in India – For NRIs, PIOs, OCIs.
- Computation of TDS or Eligible Tax Deduction and filing of all requisite returns
- Remittance of Property Sale Receipts outside India by PIOs, NRIs
- Any related query
- NRI Repatriation Services
- NRI Deductions, Exemptions, Reliefs in Income Tax Act
- NRI Seafarer Taxation in India
- TCS on Liberalised Remittance Scheme, Foreign Remittances

Benefits You Get with Us

Unbiased advice and Comprehensive support

Our expert team consists of CA’s and lawyers equipped to devise the most comprehensive and optimised solution.

One Stop Shop

Our experts can help in all matters of property buying & liquidation and other forms of investments. Our scope can include all or any covering – Tax advisory and Compliance, Legal Documents Drafting.

100+ team Size

Strong inhouse team has been helping individuals and businesses across 20+ countries.

10 Years of Success

Partner with a team that has over a decade of experience in navigating NRI businesses owners and working professionals through a varied set of problems. Numerous success stories bear testimony to our result-oriented approach.

We trust in the latest tools & technology

to provide global connectivity, and immersive access to real-time data and updates for our clients.

Our Expertise

Frequently Asked Questions

Can you help us with end-to-end solution covering Listing, Legal & Financial aspect of the transaction?
We are a financial consulting firm and can only help with respect to the financial aspect of the transaction. In-fact we come in action once you have an identified buyer of the property.
The tax is to be paid on complete transaction amount on sale of property?
No, Applicable TDS is required to be deducted on the Capital Gain only which is further bifurcated as long term and short term
  • Long-term Capital Gain: Property held for more than 2 years
  • Short-term Capital Gain: Property held for less than 2 years
Who deducts the TDS and how? Can you explain the process step by step?
  • The TDS on sale of property by NRI is required to be deducted under Section 195
  • The seller shall file an application in Form 13 with the Income Tax Dept and request them to compute his Capital Gains. In case this certificate is not obtained by the seller from the Income Tax Department, the TDS should be deducted on the Total Sale Price and not on the Capital Gains. Therefore, it is very important for the seller to obtain this certificate from the Income Tax Officer.
  • The Income Tax Department will compute the Capital Gains of the seller and will issue a certificate for Nil/ Lower deduction of TDS depending on the capital gains arising on the sale of property. (Please note, this calculation of Capital Gains cannot be done by the Seller himself and must be done by the Income Tax Officer.)
  • The seller is required to give this certificate to the buyer and the buyer will deduct the TDS as per the rates mentioned in the income tax certificate.
  • Also, what is important to know is that the buyer must have a TAN no to be able to buy a property from an NRI. Do note that PAN number is different than TAN number.
  • If the buyer is buying a property jointly with someone; both must have separate TAN numbers even if they are from the same family.
  • The TDS so deducted by the buyer shall be deposited with the Income Tax Dept within 7 days from the end of the month in which the TDS has been deducted
  • This TDS is required to be deposited along with Challan No./ ITNS 281 and can be deposited online as well as through various bank branches.
  • After the deposit of TDS, the buyer is required to furnish a TDS Return.
  • This TDS Return is required to be furnished in Form 27Q and is required to be furnished separately for each quarter in which the TDS has been deducted.
  • This TDS Return is required to be deposited within 31 days from the end of the quarter in which the TDS has been deducted
  • After the deposit of TDS and filing of TDS Return, the buyer is also required to furnish Form 16A to the seller of property.
What is the Applicability of TDS on Sale of Property by an NRI?

The TDS deduction is different for Long-term & Short-term Capital Gains

 

  • Long Term Capital Gain: 20%
  • Short Term Capital Gain: Income Tax Slab Rates of Seller

However, the Effective TDS rate for Long-term Capital gains is levied with additional Surcharge and Health & Ed Cess based on the property value.

Effective TDS rate as per the property value; applicable w.e.f. 1st April 2022 is as follows

 

  • Less than INR 50 Lacs: 20.8%
  • INR 50 Lacs – INR 1 Crore: 22.88%
  • Above INR 1 Crore: 23.92%
What is Low/ No TDS certificate?
To reduce the TDS on Sale of Property by NRI, the NRI is required to file an application in Form 13 with the Income Tax Department for issuance of Certificate for Nil/ Lower Deduction of TDS.
In absence of this certificate which is attested by the Income tax Officer, TDS gets deducted on the Total Sale Price of the property and not only on the Capital Gains. This Certificate hence helps the NRI’s in reducing the TDS Liability to a great extent and therefore, most
NRI’s opt for this certificate.
Procedure of Repatriation of Money outside India by a NRI
To repatriate the money outside India received on sale of property in India, the NRI would also be required to submit Form 15CA & Form 15CB to the Bank. These forms are required to be generated from the Income Tax Website and then submitted to the Bank.
Form 15CA may be generated by the NRI himself or by his Chartered Accountant but Form 15CB can only be generated by a Chartered Accountant. The Chartered Accountant is also required to sign and stamp the Form 15CB
In these forms, various disclosures including the source of funds to be repatriated is required to be made along with declaration that all taxes have been paid on such funds in India.
NRI’s are allowed to repatriate a maximum of $1 Million (USD) outside India per calendar year.
Is there a way to reduce my TDS liability on funds that I get on selling the property in India
To reduce the TDS on Sale of Property by NRI, the NRI is required to file an application in Form 13 with the Income Tax Department for issuance of Certificate for Nil/ Lower Deduction of TDS. This Certificate helps the NRI’s in reducing the TDS Liability to a great
extent and therefore, most NRI’s opt for this certificate.
However, filing this form is a complicated task and therefore most NRI’s hire a Chartered Accountant for filing this application.
Is my income from selling house in India Taxable in US/ Canada/ UK?
Many Countries levy Tax on sale of property by their Residents irrespective of the location of the property. For eg.: An NRI residing in US /Canada/ UK sells property in India, then both the country they are currently residing in (US/Canada/UK) and India will levy Tax on this transaction. The foreign country will levy tax because the NRI is residing in that country and India will levy tax because the property is located in India leading to double taxation.
However, to avoid levy of double taxes, India has entered into Double Taxation Avoidance Agreements (DTAA) with nearly 90 countries. These agreements state that if a person has paid Tax on sale of property in India, then he can get a tax credit of the taxes paid in India which will reduce his tax liability in the other country.
Please note, proper disclosures are required to be made in this case in the country where the tax credit is being claimed.
Also note that Australia, New Zealand, US, Canada, UK are all included in the list of countries, India has signed DTAA with.
Can I sell my property without coming to India?

Yes possible. Contact us to know more.

Other consulting Services

Virtual CFO
Fixed asset management

Learn more about us

Our Services

We cater to verticals such as consulting, business setup and compliance, staffing, investments
and outsourcing.

Our Expertise

Our industry experts provide customised solutions to meet a company’s specific needs.

About Us

Brivan Consultants is a one-stop professional financial consulting and management firm.

Get Started.

On solving for tomorrow, today.

Free consultation