This article is provided strictly for educational and general informational purposes. Tax laws, TDS provisions, capital-gains rules, forms, rates, procedures and compliance requirements may change from time to time and may also depend upon the specific facts of each transaction.

We do not accept responsibility or liability for any error, omission, incorrect calculation, financial loss, penalty, interest, tax demand, registration issue or other consequence arising from reliance on this article. Before deducting or depositing TDS, making payment to a seller, executing a sale deed, registering a property, filing any Income Tax form or taking any financial/legal decision, please verify the latest applicable provisions with your practicing Chartered Accountant (CA), tax consultant, property lawyer, Sub-Registrar, Income Tax Department or other concerned government department.

Special professional advice should be obtained where any seller is an NRI/non-resident because Section 195 compliance can be substantially different from the normal 1% property TDS applicable to resident sellers.

1. Introduction

Buying an immovable property in India becomes more complicated when a property has multiple sellers and one or more of those sellers are Non-Resident Indians (NRIs) or otherwise non-resident for Indian income-tax purposes.

A common mistake is to assume that the buyer simply has to deduct 1% TDS from the entire property transaction.

That may be incorrect.

The TDS treatment can differ depending upon whether each seller is:

• Resident in India for income-tax purposes, or
• Non-resident for income-tax purposes.

For a resident seller, property TDS is generally governed by Section 194-IA.

For a non-resident seller, the transaction generally falls under Section 195, which involves very different rules.

This distinction becomes particularly important when an inherited property has multiple co-owners and one co-owner is living abroad.

2. Example Scenario

Consider the following hypothetical transaction.

Total sale consideration: ₹1,10,00,000

There are three sellers.

Seller 1 – Resident Indian
Seller 2 – Resident Indian
Seller 3 – UK resident/non-resident for Indian tax purposes

Suppose each seller owns approximately one-third (33.33%) of the property.

The property was originally purchased by their father in 1985 and was subsequently inherited by the three present owners.

For simplicity, approximately one-third of ₹1.10 crore would be:

Seller	Residential Status	Ownership	Approx. Consideration
Seller 1	Resident	33.33%	₹36,66,667
Seller 2	Resident	33.33%	₹36,66,667
Seller 3	Non-Resident	33.33%	₹36,66,666
Total		100%	₹1,10,00,000

Minor rounding differences may occur.

3. First Determine the Residential Status of Every Seller

This is one of the most important steps.

Do not determine TDS merely from:

• Indian citizenship,
• Aadhaar,
• Indian PAN,
• Indian passport history,
• NRE/NRO bank account,
• overseas address, or
• current nationality alone.

Income-tax residential status must be determined according to the applicable provisions of Indian income-tax law.

For example, a person may have an Indian PAN but still be a non-resident for Indian income-tax purposes.

Similarly, merely having an Indian bank account does not automatically make someone a resident.

The buyer should obtain appropriate documentation/declarations and have the status verified professionally where there is any doubt.

4. TDS for Resident Property Sellers

When an immovable property is purchased from a resident seller and the statutory conditions are satisfied, Section 194-IA generally applies.

The commonly applicable rate is:

TDS = 1%

The ₹50 lakh threshold rules must be examined based on the applicable law.

Importantly, amendments applicable from 1 October 2024 prevent the threshold from being circumvented merely by splitting a property transaction among multiple buyers or sellers.

Therefore, one should not automatically conclude:

"Each seller receives less than ₹50 lakh, so no TDS is applicable."

For a property worth ₹1.10 crore having multiple sellers, professional verification of Section 194-IA applicability is essential.

5. Example TDS for Two Resident Sellers

Assume the sale consideration attributable to each resident seller is:

₹36,66,667

Illustrative TDS:

₹36,66,667 × 1%
= approximately ₹36,667

Therefore:

Resident Seller 1

Gross consideration: ₹36,66,667
TDS: approximately ₹36,667
Net amount: approximately ₹36,30,000

Resident Seller 2

Gross consideration: ₹36,66,667
TDS: approximately ₹36,667
Net amount: approximately ₹36,30,000

These numbers are illustrative and assume there is no higher value that changes the applicable TDS base.

6. Stamp-Duty Value Is Also Important

A buyer should not look only at the negotiated property price.

For Section 194-IA, the applicable rules require consideration of the sale consideration and stamp-duty value, subject to the current statutory provisions.

For example:

Actual sale consideration = ₹1.10 crore

Suppose stamp-duty value = ₹1.20 crore.

The buyer should not automatically calculate TDS using ₹1.10 crore without checking the applicable higher-value rule.

Therefore, before finalizing TDS, obtain the official stamp-duty/collector/circle-rate valuation applicable to the transaction and have the computation verified.

7. Do Not Apply 1% TDS to the NRI Seller

This is one of the most important points in a mixed resident/NRI property transaction.

If Seller 3 is a non-resident for Indian income-tax purposes, Section 194-IA should not simply be applied to that seller at 1%.

Payment to the non-resident seller generally falls under:

Section 195 of the Income-tax law.

The procedure, withholding determination, forms and compliance requirements can be significantly different.

8. Why Section 195 Is More Complicated

For resident sellers, buyers commonly think in terms of the 1% property TDS mechanism.

For an NRI/non-resident seller, several additional questions may arise:

• Is the property a long-term capital asset?
• What is the acquisition date?
• Was the property purchased, gifted or inherited?
• What was the original owner's acquisition cost?
• Was the property acquired before 1 April 2001?
• What was its fair market value as on 1 April 2001?
• Are improvement expenses allowable?
• Are transfer expenses allowable?
• What capital-gains provisions apply?
• What TDS rate applies?
• Is surcharge applicable?
• Is Health and Education Cess applicable?
• Is a lower/appropriate TDS certificate/order available?
• Does the buyer require TAN under the rules applicable on the payment date?
• Which TDS return/form is applicable?
• Are Form 15CA/15CB requirements relevant?

Because of these variables, Section 195 should generally be handled with professional assistance.

9. Inherited Property: Cost Is Not Automatically Zero

A very common misunderstanding is:

"The seller inherited the property, so acquisition cost is zero."

That is generally not the correct way to approach inherited property for capital-gains purposes.

Where property is acquired through inheritance, applicable capital-gains provisions can take into account the cost to the previous owner.

The previous owner's holding history can also be relevant for determining whether the asset is long-term or short-term.

10. Example: Father Purchased Property in 1985

Suppose:

Father purchased property in 1985.

The father subsequently passed away.

The property was inherited by three children.

One child now resides in the UK and is non-resident for Indian income-tax purposes.

The other two sellers are resident Indians.

The property is now being sold for ₹1.10 crore.

For capital-gains analysis, one should not simply consider the date on which the children inherited the property as though they had purchased it for zero rupees on that date.

The father's acquisition history becomes relevant.

11. Why 1 April 2001 Becomes Important

Where an eligible capital asset was acquired by the previous owner before 1 April 2001, the capital-gains provisions can allow the relevant cost basis to be determined with reference to the Fair Market Value (FMV) as on 1 April 2001, subject to the applicable statutory conditions and limitations.

This can be extremely important for an old property.

Suppose:

Property purchased by father: 1985
Property inherited by children: Later
Property sold: 2026

Instead of simply treating the old 1985 purchase price as the only possible starting point, the applicable provisions concerning the 1 April 2001 FMV should be examined.

12. Getting an FMV Valuation as on 1 April 2001

For an old inherited property, the parties should consider obtaining a proper valuation report from an appropriately qualified/registered valuer.

The valuation may consider factors such as:

• Property location
• Land area
• Building area
• Property type
• Condition as of the valuation date
• Comparable transactions
• Historical market conditions
• Government/circle rates
• Development potential
• Road width/location
• Commercial or residential use
• Other legally relevant valuation factors

Do not simply invent an estimated 2001 value.

A properly supported valuation can become important if the capital-gains computation is questioned later.

13. Important Limitation for Land and Building

For land or building acquired before 1 April 2001, there are specific statutory limitations concerning the FMV that can be adopted as the cost as on 1 April 2001.

Therefore, a high valuation figure produced without considering the statutory ceiling/conditions should not automatically be used for the income-tax computation.

This is another reason to involve a CA and a qualified valuer.

14. NRI Seller's Illustrative Capital-Gain Calculation

Suppose only for educational illustration:

Total sale consideration = ₹1,10,00,000

NRI ownership = one-third

NRI's consideration = approximately ₹36,66,666

Assume the accepted FMV/cost basis attributable to the NRI's one-third share is:

₹10,00,000

A very simplified illustration would be:

Sale consideration attributable to NRI: ₹36,66,666

Less illustrative cost: ₹10,00,000

Illustrative gain: ₹26,66,666

However, this is not a final tax calculation.

Actual computation may be affected by applicable provisions concerning:

• cost of acquisition,
• FMV,
• transfer expenses,
• improvements,
• exemptions,
• grandfathering/transitional provisions,
• surcharge,
• cess,
• residential status,
• DTAA considerations where relevant, and
• other applicable tax provisions.

15. Do Not Self-Calculate Reduced NRI TDS Without Checking Section 195 Procedure

A particularly risky approach is:

"I calculated the NRI's capital gain myself, so I will deduct tax only on that amount."

The capital-gains calculation and the buyer's legal withholding obligation under Section 195 need to be examined together.

Depending upon the circumstances, the seller/buyer may need an appropriate determination/certificate from the Income Tax authorities to support withholding on the appropriate taxable amount rather than following a simplistic calculation.

The buyer should therefore get written professional advice before releasing the NRI seller's payment.

16. Long-Term Capital Gain on NRI Property

A property originally acquired in 1985 and subsequently inherited will generally require examination of the previous owner's holding period.

For property qualifying as a long-term capital asset, the post-23 July 2024 capital-gains framework introduced a 12.5% LTCG rate without indexation in many situations.

However, property taxation has transitional provisions and distinctions that can depend on the taxpayer's status and acquisition circumstances.

Therefore, do not simply multiply the NRI seller's entire sale proceeds by 12.5%.

Also do not assume that a concession available to a resident individual/HUF necessarily applies identically to an NRI.

Get the NRI computation verified independently.

17. NRI Seller's NRE/NRO Bank Account Does Not Decide TDS

The type of bank account used by the seller does not determine whether Section 194-IA or Section 195 applies.

An NRI may have:

• NRE account
• NRO account
• FCNR account
• other permitted banking arrangements

The buyer's TDS obligation primarily depends on the seller's residential status for income-tax purposes and applicable tax law, not merely on the bank account into which money is being transferred.

Banking/FEMA/repatriation requirements should also be checked separately where relevant.

18. PAN of the NRI Seller

The NRI seller should generally have a valid PAN where required for the transaction and tax compliance.

The buyer should carefully verify:

• Seller's full legal name
• PAN
• Passport
• Overseas address
• Indian address, where applicable
• Residential-status declaration
• Ownership documents
• Inheritance documents
• Bank account details

A spelling mismatch between PAN, passport, title documents and sale deed can cause unnecessary complications.

19. TAN Requirement Can Be Important

Historically, Section 195 compliance by a buyer paying a non-resident seller could require the buyer to obtain a Tax Deduction and Collection Account Number (TAN).

Budget 2026 announced simplification concerning resident individual/HUF purchasers of immovable property from non-residents, with the proposed change taking effect from 1 October 2026.

Therefore, transactions around this transition period require particular care.

A buyer making payment before 1 October 2026 should not blindly follow instructions intended for transactions occurring after the new procedure takes effect.

Always verify the law and portal procedure applicable on the actual date of payment/credit.

20. Timing of TDS Is Important

TDS should not be treated merely as something to correct after registration.

The timing of:

• advance payment,
• token payment,
• instalments,
• final payment,
• credit to seller, and
• registration

can affect the withholding obligation.

If consideration is paid in instalments, the TDS implications should be examined at each relevant payment/credit stage.

This is particularly important for an NRI seller.

21. Should TDS Be Mentioned in the Sale Deed?

As a practical documentation measure, it is advisable for the sale deed to clearly explain the total consideration and the manner in which it has been paid.

Where TDS is deducted, the consideration clause can separately identify:

• Gross amount attributable to each seller
• TDS deducted for each seller
• Section under which TDS is deducted
• Net amount paid to each seller
• Payment instrument/reference details
• Amount to be deposited with the Government

The exact wording should be approved by the deed writer/property lawyer/CA and accepted by the concerned Sub-Registrar.

22. TDS Is Not a Separate Reduction in the Sale Price

Suppose a seller's agreed consideration is ₹36,66,667 and ₹36,667 is deducted as TDS.

It should not be interpreted as:

Seller sold property for only ₹36,30,000.

Instead:

Gross consideration = ₹36,66,667

₹36,30,000 → paid directly to seller

₹36,667 → deposited with Government as TDS on behalf of seller

Total consideration accounted for = ₹36,66,667

The TDS becomes tax credit of the seller, subject to proper deposit/reporting.

23. Suggested Structure of the Sale-Deed Consideration Clause

A professionally drafted deed may describe the transaction broadly as follows:

Total Sale Consideration: ₹1,10,00,000

Seller 1 – Resident

Gross consideration attributable to Seller 1: ₹36,66,667

TDS under Section 194-IA: approximately ₹36,667, subject to final computation

Net payment: approximately ₹36,30,000

Seller 2 – Resident

Gross consideration attributable to Seller 2: ₹36,66,667

TDS under Section 194-IA: approximately ₹36,667, subject to final computation

Net payment: approximately ₹36,30,000

Seller 3 – Non-Resident

Gross consideration attributable to Seller 3: ₹36,66,666

TDS under Section 195: ₹________

Net payment: ₹________

The deed may further record that applicable TDS deducted and deposited with the Central Government on behalf of the respective seller constitutes part of the sale consideration.

The above wording is illustrative only. The actual sale deed must be drafted/approved by the appropriate legal and tax professionals.

24. Do Not Put an Estimated NRI TDS Figure in the Registry

The resident-seller TDS calculation may be relatively straightforward.

The NRI seller's TDS is different.

Do not put an arbitrary figure such as:

1%, 10%, 12.5%, 20% or another percentage

in the final sale deed merely on the basis of an internet article.

Have the Section 195 position determined first.

Ideally, complete the NRI tax/TDS exercise before registration and before final payment.

25. Lower or Appropriate TDS Certificate/Determination

Because withholding in an NRI property transaction can otherwise become substantial, the seller may explore the statutory procedure for obtaining an appropriate/lower withholding determination or certificate where legally available.

This can be useful where the actual taxable capital gain is significantly lower than the gross sale consideration.

For example:

NRI sale proceeds = ₹36.67 lakh

but the actual taxable capital gain may be substantially less after determining the permitted cost and other deductions.

The correct statutory procedure can prevent excessive withholding while protecting the buyer from under-deduction risk.

Professional assistance is strongly recommended.

26. Form 15CA and Form 15CB

Payments involving non-residents can also raise questions regarding Form 15CA and Form 15CB, particularly in connection with remittance and tax determination.

Form 15CB is generally a CA certificate used in specified situations for determining the nature of remittance, taxability and applicable tax treatment.

Whether Form 15CA/15CB is actually required depends upon the transaction and payment/remittance circumstances.

Do not automatically file them merely because the seller lives abroad, and do not automatically assume they are unnecessary.

Ask the practicing CA and authorized dealer bank handling the transaction/remittance.

27. Documents to Collect from Resident Sellers

The buyer should consider obtaining:

• PAN
• Aadhaar or other appropriate identification
• Current address proof
• Ownership/title documents
• Inheritance documents
• Previous owner's title deed
• Previous sale deed
• Death certificate of previous owner, where relevant
• Will/probate/succession documentation, where applicable
• Mutation documents
• Seller's bank details
• Residential-status declaration
• TDS-related details

Document requirements vary according to state, title history and transaction.

28. Additional Documents for NRI Seller

For a non-resident seller, consider obtaining/checking:

• PAN
• Passport
• Overseas address
• Indian address, where applicable
• NRI/non-resident status declaration
• Relevant visa/residence documentation where necessary
• NRO/NRE banking details
• Property title documents
• Inheritance documents
• Father's/original owner's purchase deed
• Death certificate
• Mutation records
• 1 April 2001 valuation report where relevant
• Capital-gain computation
• Lower/appropriate TDS certificate/order, if applicable
• Power of Attorney, if the seller will not personally attend registration
• FEMA/banking documentation where relevant

29. Power of Attorney for NRI Seller

If the NRI seller cannot travel to India for registration, a Power of Attorney may sometimes be used.

However, execution, notarisation, apostille/consular authentication, stamping/adjudication and registration requirements can differ depending on the jurisdiction and state.

Do not assume that an ordinary signed letter from the NRI is sufficient.

Check the procedure with:

• Local Sub-Registrar
• Property lawyer
• Indian Embassy/Consulate, where applicable
• State registration authority

30. Recommended Payment Trail

For a high-value transaction, maintain a clean banking and documentary trail.

Avoid unclear combined payments.

A better structure is:

Buyer → Seller 1 bank account
Buyer → Seller 2 bank account
Buyer → NRI Seller bank account
Buyer → Government for Seller 1 TDS
Buyer → Government for Seller 2 TDS
Buyer → Government for NRI Seller TDS

Each payment should be capable of being reconciled with the sale deed and tax records.

31. TDS Certificates and Tax Credit

After the buyer properly deposits and reports TDS, the seller should receive the applicable TDS certificate/tax credit according to the relevant procedure.

The seller should subsequently verify that the TDS appears correctly against the seller's PAN in the Income Tax records.

Incorrect PAN details can create serious problems.

Always double-check PAN before filing the TDS statement.

32. Who Is Responsible for Deducting TDS?

The obligation to deduct property TDS is generally placed upon the buyer/payer, subject to the applicable section.

This is why a buyer should not rely solely on the seller saying:

"Don't deduct TDS; I will pay my tax later."

TDS and the seller's ultimate income-tax liability are separate concepts.

If the law requires the buyer to deduct tax, failure to do so can expose the buyer to consequences.

33. Consequences of Incorrect TDS

Incorrect handling can potentially result in:

• Interest
• Late fees
• Penalties
• Tax demand
• TDS default proceedings
• Difficulty obtaining tax credit
• Problems during assessment
• Complications for the NRI seller
• Additional compliance for the buyer

For a ₹1.10 crore property transaction, obtaining professional advice before payment is far less expensive than correcting a major TDS error later.

34. Recommended Workflow

For a property involving resident and NRI co-owners, a practical workflow is:

1. Verify title and ownership percentage.
2. Determine tax residential status of every seller.
3. Verify PAN of every seller.
4. Obtain inheritance documents.
5. Obtain the original owner's purchase deed.
6. Determine whether the property was acquired before 1 April 2001.
7. Obtain a defensible 1 April 2001 FMV where applicable.
8. Check current stamp-duty value.
9. Calculate resident sellers' Section 194-IA TDS.
10. Obtain professional Section 195 computation for the NRI seller.
11. Check whether TAN is required on the relevant date.
12. Examine lower/appropriate withholding procedures.
13. Check Form 15CA/15CB and banking/FEMA requirements where applicable.
14. Finalize gross consideration and TDS seller-wise.
15. Incorporate payment details into the sale deed.
16. Make payments through traceable banking channels.
17. Deposit TDS within applicable timelines.
18. File the applicable TDS statements/forms.
19. Issue/download applicable TDS certificates.
20. Confirm that the sellers receive correct TDS credit.

35. Summary

A ₹1.10 crore inherited property with two resident sellers and one NRI seller cannot safely be handled by deducting a flat 1% from everyone.

The resident sellers generally fall under Section 194-IA, whereas the NRI seller generally falls under Section 195.

Because the property was originally acquired by the previous owner in 1985, the rules relating to inherited assets, previous-owner cost and Fair Market Value as on 1 April 2001 become particularly relevant.

The safest approach is to finalize the tax treatment before the final payment and registration, especially for the NRI seller.

Frequently Asked Questions (FAQ)

1. Is TDS applicable when buying property for ₹1.10 crore?

Generally yes, subject to the applicable provisions, nature of property, seller's residential status and other statutory conditions.

2. Is property TDS always 1%?

No. The commonly known 1% mechanism under Section 194-IA relates to eligible purchases from resident sellers. A non-resident seller generally falls under Section 195.

3. If there are three sellers and each receives less than ₹50 lakh, can TDS be avoided?

Do not assume so. The post-1 October 2024 aggregation provisions must be considered in transactions involving multiple transferors/transferees.

4. Does 1% TDS apply to an NRI seller?

Generally, Section 194-IA's 1% mechanism is not the applicable mechanism for a non-resident seller. Section 195 must be examined.

5. What if the NRI has an Indian PAN?

Having PAN does not automatically make the seller a resident.

6. What if the NRI has Aadhaar?

Aadhaar does not by itself determine income-tax residential status.

7. What if the seller has an NRO account?

The bank-account type does not by itself determine the applicable TDS section.

8. What if the NRI has an NRE account?

The same principle applies. Residential status and applicable tax law must be examined.

9. Is inherited property's acquisition cost zero?

Generally, no. Previous-owner cost provisions can apply.

10. Father purchased the property in 1985. Is that relevant?

Yes. It can be highly relevant to the holding period and cost calculation.

11. Why is 1 April 2001 important?

For eligible property acquired before 1 April 2001, applicable provisions can permit the use of FMV as on that date as the cost basis, subject to statutory conditions.

12. Who determines the 2001 FMV?

A properly qualified/registered valuer should generally be engaged where a formal valuation is needed.

13. Can we estimate the 2001 value ourselves?

That is not advisable for a significant property transaction.

14. Is the NRI's entire ₹36.67 lakh taxable as capital gain?

Not necessarily. Capital gain is calculated after applying the relevant cost and other allowable provisions.

15. Can the buyer simply deduct 12.5% from ₹36.67 lakh?

Do not do this automatically. Section 195 withholding and the actual capital-gains computation should be professionally determined.

16. Is an NRI's inherited property long-term?

The previous owner's holding period can be relevant. A property originally acquired in 1985 would require the inherited-asset rules to be applied.

17. Should TDS be mentioned in the sale deed?

It is advisable for the consideration/payment clause to clearly document TDS and net payments, subject to the deed writer/lawyer/Sub-Registrar's requirements.

18. Is TDS paid to the Sub-Registrar?

No. TDS is deposited with the Central Government through the applicable income-tax mechanism.

19. Is TDS additional to the property price?

No. Normally the TDS withheld from the seller's consideration forms part of the agreed consideration.

20. Who gets credit for the TDS?

The respective seller receives tax credit against their PAN when the TDS is correctly deposited and reported.

21. Who is responsible for deducting TDS?

Generally the buyer/payer has the withholding obligation under the applicable section.

22. Can the seller tell the buyer not to deduct TDS?

The buyer should follow the statutory requirement rather than relying solely on the seller's request.

23. Is TAN required for an NRI property purchase?

Section 195 transactions have historically involved TAN requirements. Because procedural changes were announced for certain buyers from 1 October 2026, verify the requirement applicable on the actual payment date.

24. Does a normal resident-property TDS form work for the NRI seller?

Do not assume so. Section 195 has a different compliance framework.

25. Is Form 15CA required?

It depends upon the nature and circumstances of the payment/remittance. Obtain professional advice.

26. Is Form 15CB required?

It may be required in specified circumstances involving payments to non-residents. A CA should determine applicability.

27. Can an NRI obtain lower TDS treatment?

There are statutory mechanisms for appropriate/lower withholding in qualifying circumstances. The seller should consult a CA regarding the applicable procedure.

28. Should the lower TDS process be completed before registration?

Where it is being relied upon for payment, it is generally prudent to resolve it before the relevant payment/registration rather than trying to correct excessive withholding afterwards.

29. What happens if too much TDS is deducted?

The seller may ultimately have to claim the excess through the applicable income-tax process/refund mechanism.

30. What happens if too little TDS is deducted?

The buyer may face tax, interest and other consequences depending upon the circumstances.

31. Can the three sellers receive one combined payment?

A clear seller-wise banking trail is preferable, particularly when the sellers have different tax statuses.

32. Should each seller's consideration be mentioned separately?

Doing so can substantially improve the documentary trail, particularly where different TDS sections apply.

33. What if ownership is exactly one-third each?

The consideration should ordinarily be allocated according to the legally established ownership/transaction arrangement, subject to professional verification.

34. What if the ownership percentages are different?

The consideration and tax treatment should be calculated using the actual legal ownership/consideration allocation.

35. What if stamp-duty value exceeds ₹1.10 crore?

The higher stamp-duty value may affect the relevant tax/TDS calculations. Have it checked before depositing TDS.

36. Is agricultural land treated the same way?

Not necessarily. Certain agricultural land can fall outside particular property-TDS provisions. Its exact classification and location matter.

37. Can registration happen before TDS is calculated?

The timing of deduction depends upon the applicable law and payment/credit events. Do not postpone the TDS analysis until after registration.

38. What if an advance has already been paid?

TDS implications can arise at the payment/credit stage. Tell your CA about every advance or token payment already made.

39. Can the NRI seller attend registration personally?

Yes, subject to normal registration and identification requirements.

40. Can an NRI execute the transaction through Power of Attorney?

Potentially yes, but POA execution, authentication, stamping and registration requirements must be verified with the relevant authorities.

41. Does inheritance itself attract property purchase TDS?

The current sale by the heirs is the transaction being discussed. Inheritance and sale are different events for tax purposes.

42. Do we need the father's old purchase deed?

It is extremely useful for establishing title history, acquisition date and cost information.

43. What if the 1985 purchase price is unavailable?

Other legally acceptable evidence and the 1 April 2001 valuation provisions may become especially important. Seek professional advice.

44. Is a 2001 valuation certificate compulsory in every case?

Not necessarily, but it can be highly valuable where FMV as on 1 April 2001 is being relied upon.

45. Can renovation expenses reduce capital gain?

Certain qualifying improvement costs may be relevant, subject to the applicable capital-gains rules and documentary evidence.

46. Can brokerage/legal transfer expenses be considered?

Certain expenses incurred wholly and exclusively in connection with the transfer may be relevant. A CA should determine eligibility.

47. Should the buyer verify PAN before depositing TDS?

Absolutely. An incorrect PAN can cause serious reconciliation and tax-credit problems.

48. Should the NRI seller consult an Indian CA?

For a significant Indian property sale involving Section 195, professional Indian tax advice is strongly recommended.

49. Should the buyer also consult a CA?

Yes. The buyer carries withholding responsibilities and therefore needs independent assurance that TDS has been handled correctly.

50. What is the safest approach?

Determine every seller's residential status → verify ownership → establish the 2001 FMV/cost where relevant → determine Section 194-IA TDS for resident sellers → obtain professional Section 195 advice for the NRI seller → finalize the sale-deed payment clause → deduct/deposit TDS correctly → complete registration and tax reporting.

 

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