When NRIs sell real estate in India, the temptation to declare themselves as Resident Indians for a simpler 1% TDS deduction can be strong. However, this approach carries significant risks, potentially leading to legal complications and financial penalties.
Compliance and Consequences
Declaring incorrect residential status is not just a compliance issue—it contributes to tax evasion and can attract heavy fines and legal actions. While the buyer deducts TDS and deposits it against the seller’s PAN, it is the seller’s duty to declare their correct residential status.
Scrutiny and Repercussions
Buyers may justify the 1% deduction based on KYC documents like Aadhar and PAN, believing they are dealing with a Resident Indian. If scrutinized, NRIs cannot justify the misinformation and may face legal actions under various sections of the Income Tax Act, such as 276C, 277, and 271(1)(c).
How to Sell Property in India While Staying Abroad
Selling property in India while staying abroad can be a seamless process with the right approach:
- Legal Documentation: Ensure you have the necessary legal documents like General and Special Power of Attorney, allowing a trusted representative to act on your behalf.
- Engage Professionals: Work with a reliable partner who understands the NRI ecosystem and can manage the sale process, including legal, tax, and compliance requirements.
- Coordination: Your representative or partner should coordinate all aspects of the sale, from marketing the property to finalizing the deal, ensuring smooth communication and transaction efficiency.
Read here: NRIs: Sell Your Indian Properties Without the Hassle of Traveling
NRIs can sell their Indian properties without traveling by partnering with Brivan Consultants, who handle all Legal, tax, Realtor services, Banking, Remittances, Compliances and more, ensuring smooth transactions and maximizing returns. This approach eliminates travel hassles and provides tailored solutions based on over a decade of experience.
Advisable Actions for NRIs
Legal Compliance
Always follow the law of the land and truthfully declare your correct residential status when selling property in India. This will help you avoid unnecessary legal complications and financial penalties.
Professional Assistance
Engage with a reliable partner who can navigate the complexities of the process, ensuring 100% compliance and maximizing savings on sales proceeds.
Discover the Brivan Consultants Advantage
Maximize Your Returns
We guarantee to help you get up to 40% more money in your base country without the need for travel.
Decades of Experience
With over a decade of helping NRIs and satisfied clients in over 15+ countries, we offer unmatched service and detailed packages tailored to your needs.
Reach Out to Us Today!
Ready to simplify your property sale and maximize your returns? Contact Brivan Consultants today and discover how we make the process seamless and profitable for NRIs worldwide.
By adhering to the legal requirements and seeking professional assistance, NRIs can ensure a smooth and profitable property sale process in India. Avoid the risks and make informed decisions to safeguard your interests.