Buying Property in India from NRI
This document outlines the complete process wrt to deducting and depositing tax by the buyer in case of property sale by a NRI.
If the property price is above 50lacs, then long term capital gain tax of 22.88% is applicable on sale consideration but the seller can apply for Lower TDS certificate (takes 30-45days) and reduce the TDS upto 3%.
The buyer of the property must comply with mandatory reporting requirements.
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Get the TAN number: The buyer of the property must have a TAN number for the deduction of TDS.
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Deduct TDS: As a buyer, if you’ve deducted a TDS,
you’re required to deposit TDS to ITD within 7 days from the end of the
month in which the TDS has been deducted.
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File TDS Return: After deducting the TDS, now buyer of the property must furnish a quarterly TDS Return in Form 27Q.
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Issue Form No.16A: The buyer must also provide Form 16A 1
to the seller of the property within 15 days of filing the TDS Return.
Further, the buyer can download the certificate from the TRACES
Generate TAN
Apply New TAN on NSDL
Submit the form, make payment of Rs77, send courier to Pune.
Register TAN on eFiling
Click on Register at top right
Fill the details online and verify with Email and Mobile OTP
You will receive an email with Subject: OTP for Contact details Verification
Activate TAN on eFiling
Login to eFiling portal with your PAN
Go to Pending Actions > Worklist
Approve your TAN Registration
You will receive an email with Subject: TAN BLXXXXXX7D - Registration Request Approved
Make TDS Payment (For buying property from NRI)
Login to eFiling Portal with your TAN
Go to e-File > e-Pay Tax
Click on New Payment at top right.
Select Assessment Year and click on Proceed under Pay TDS section.
Select Other sums/Section 195 and click Continue.
Fill the Tax Breakup
Tax @ As mentioned in Lower TDS Certificate
Surcharge @ 10%
Cess @ 4%
Filing of Return
Download CSI file from
OLTAS Application - Challan Status Inquiry.
Note: Only works if you have paid TDS from OLTAS.
Download Challan Status Inquiry (CSI) text file
Login to eFiling
portal with your TAN
Go to e-File > e-Pay Tax
Click on CSI File option.
Provide the date range and download the CSI file.
Download Return Preparation Utility (RPU) from NSDL
Unzip the RPU utility and launch the TDS_RPU_4.7.jar file.
Select the Form No., Financial Year & Quarter and start filling details in each of the tab
Save the intermediary changes to a File (do not change the directory after intermediary saves)
After reviewing it proceed to Create File
Then launch the TDS_STANDALONE_FVU_8.3.jar to do verification.
- TDS/TCS Input File: Select the 27QRQ2.txt file generated from RPU
- Challan Input File: Select the CSI file
- Error/Upload & Statistics Report File Path: C:\rpt\ev2
Upload the Return File
Go to e-File>Income Tax Forms>File Income Tax Forms
Choose Deduction of Tax at Source (TDS) the last option
Zip the fvu file before uploading and ensure there are no err files created
It will generate the Acknowledgement No and RRR No
Request, Download and Generate From16A pdf
Register on
TRACES withe the TAN no.
Request for Form16A
After 2-3days you will be able to download the zip file.
Download the pdf converter utility to generate the pdf file from zip file.
The password for conversion will be your TAN no.
The utility only works in Windows PC.
Emails
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Date
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From / Subject / Body
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21Jul
|
From:
tan@nsdl.co.in
Subject:
Acknowledgement for your TAN Application
Body:
|
Dear Shri FIRST LAST,
Thank you for using NSDL online TAN application
system. Your TAN application
acknowledgement number is 88303xxxxxx325. Kindly quote this number in all
future correspondence related to your application.
Your application shall be forwarded to Income Tax Department for allotment
of TAN upon receipt of payment
and acknowledgement sheet duly signed.
Please deposit the cheque / DD drawn in favour of NSDL - TIN, payable at
par in Mumbai in any HDFC
Bank branch or forward it to NSDL. Kindly ignore this if payment has
already been made using
credit card / debit card or net banking option.
For more information contact the PAN/TDS Call Centre:
Telephone: 020 - 27218080
Fax: 020 - 27218081
e-mail: tininfo@nsdl.co.in
Write to:
Income Tax PAN Services Unit
(Managed by NSDL e-Governance Infrastructure Limited)
5th Floor, Mantri Sterling,
Plot No. 341, Survey No. 997/8,
Model Colony,
Near Deep Bungalow Chowk,
Pune - 411016
SMS facility: Type NSDLTAN <space> Acknowledgement No. & send to
57575 to obtain application status.
This is an auto generated e-mail, please do not reply to this e-mail.
|
|
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25Jul
|
From:
tin@tinonapp2.nsdl.co.in
Subject:
TAN Application - ack. No. 8830391xxxxxx5 dated :
20/07/2023
Body:
Dear Sir / Madam,
We have received your TAN application documents for
above application on July 25, 2023. These documents will be subject to
verification and the status of verification will be intimated to you by
e-mail.
This is an auto
generated e-mail please do not reply to this e-mail.
Regards,
TIN-Online
|
|
28Jul
|
From:
no-reply@nsdl.co.in
Subject:
TAN allotment letter for your TAN application <
88303912xxxxxx >
Body:
Dear Sir / Madam,
Kindly refer to your application (Form 49B) dated Jul 20, 2023 for the
allotment of Tax Deduction Account Number. In this connection, the following TAN has been issued to you/your organisation:
BLRAxxxxxD
and the e-TAN is enclosedherewith.
The password for opening the PDF file is "Six Digit PIN
code" mentioned in the TAN Application Form.
Please quote the same in all TDS challans,TDS Certificates,TDS
returns,Tax Collection at Source (TCS) returns as well as other documents
pertaining to such transactions.
Quoting of TAN on all TDS returns and
challans for payment of TDS is necessary to ensure credit of TDS paid by you
and faster processing of TDS returns.
The above TAN should also be used as Tax
Collections at Source Account Number under section 206CA.
Kindly note that it is mandatory to quote TAN
while furnishing TDS returns, including e-TDS returns. e-TDS returns will not
be accepted if TAN is not quoted.
This supersedes all the Tax Deduction / Collection Account
Number, alloted to you earlier.
Income
Tax Department
This is an auto generated e-mail
please do not reply to this e-mail.
|
|
14Sep
|
From:
TDS Intimations intimations@tdscpc.gov.in
Subject:
Request for Lower/ Nil Deduction Certificate for TAN
ending with XXXX Form-13 -regarding
Body:
M/s FIRST LAST,
Form-13 Request 501xxx submitted by PAN FQXXXXX74D for the Financial year
2023-24 has been Approved by the Assessing Officer. You can Download the
Certificate by logging into TRACES (www.tdscpc.gov.in)
website using below path-
Path: TRACES Home >> Downloads >> Download 197,206C(9)
Certificate
Regards,
Income Tax Department
Note:
This is an auto generated e-mail. Please do not reply to
it directly. In case of any queries, you may reach out to us at contactus@tdscpc.gov.in.
Visit TRACES at www.tdscpc.gov.in
|
|
16Sep
|
From:
communication@cpc.incometax.gov.in
Subject:
TAN BLXXXXXX7D - Registration Request Approved
Body:
Dear FIRST LAST,
The Registration request for TAN BLXXXXXX7D is approved
successfully by Organization PAN ALXXXXXX8P.
You can now login to e-Filing Portal using your TAN as
User id and the Password set by You during Registration.
This is a system generated e-mail and please do not reply. Add communication@cpc.incometax.gov.in
to your white list / safe sender list. Else, your mailbox filter or ISP
(Internet Service Provider) may stop you from receiving e-mails.
Thanks & Regards,
e-Filing team,
Income Tax Department
|
|
16Sep
|
From:
communication@cpc.incometax.gov.in
Subject:
Transaction Alert; PAN/TAN BLRA4XXXXX; CRN 23091600xxxxxx
Body:
Dear Sir/Madam,
FIRST LAST
PAN: BLRAxxxxxD
Transaction of Rs. xxxxxx against CRN 23091xxxxxxx51 dated 16/09/2023 is
initiated from e-Filing portal.
You cannot initiate another transaction against this CRN for the time being.
If your account has been debited, you are advised to wait for the updation of
status.
Else, you may re-create the challan and make the payment if your bank account
has not been debited.
Thank you
This is a system generated e-mail and please do not reply. Add communication@cpc.incometax.gov.in
to your white list/safe sender list.
Else, your mailbox filter or ISP (Internet Service Provider) may stop
you from receiving e-mails.
If you are not aware about this transaction and you have received this email,
it may mean that somebody else has done it.
Please contact 1800 103 0025 or +91-80-46122000 immediately.
Regards,
e-Filing team,
Income Tax Department
|
References
https://qna.tax/t/tds-on-sale-of-property-by-nri/3761
NRI Taxation
https://www.charteredclub.com/nri-tds-certificate/
Preparing & Filing TDS Return 27Q
https://www.youtube.com/watch?v=A-0jbWJL5DI
https://www.indiafilings.com/learn/form-27q-nri-tds-returns/
