The Risks for NRIs Selling Real Estate in India as Resident Indians
- Temptation and Risk: NRIs may be tempted to declare themselves as Resident Indians for a straightforward 1%TDs deduction, avoiding the complexities tied to their actual status. However, this approach is fraught with risks, potentially leading to legal complications and financial
penalties. - Compliance and Consequences:
- Declaring incorrect residential status is not only a compliance issue but also contributes to the erosion of government tax revenue, attracting heavy fines and legal actions.
- While the buyer is responsible for deducting TDS and depositing it against the seller’s PAN, it’s the seller’s duty to declare the correct residential status
- Scrutiny and Repercussions:
- Buyers may justify the 1% deduction under the belief they were dealing with a Resident Indian, based on provided KYC documents like Aadhar and PAN.
- In case of scrutiny, NRIs cannot justify the misinformation, potentially facing legal actions under various sections of the Income
Tax Act (such as 276C, 277, 271(1)(c)).
Advisable Actions for NRIs:
Our Offer to NRIs:
money in your base country without the need for travel.
Contact Us:
Reach out today to learn how we can assist you in selling your property in India,
ensuring a hassle-free and profitable experience.