As an NRI seller, you might find yourself in a situation where the buyer refuses to do TDS compliance. Buyers often demand that NRI sellers handle all the compliances, including filing TDS returns and paying TDS. But is it possible for NRI sellers to comply on behalf of the buyer?
The answer is yes, an NRI seller can take care of the compliances, but there are a few steps that need to be followed. In this article, we will outline the procedure for NRI sellers to comply with TDS, even if the buyer refuses to do so.
You can also watch our video where I discuss this topic, In case you are not a fan of reading
Before we begin, it’s important to note that most NRI sellers sell their properties under stressful circumstances. They might need the money for personal reasons, such as buying a property abroad, funding their children’s education, or any other purpose. Therefore, it’s important to negotiate better when you plan to sell a property. If you want to learn how to negotiate better, check out our interview with NRI Money Clinic.
Consult CA Arun Tiwari for more info at 📞 8080088288 or cs@aktassociates.com
Now, let’s dive into the main question.
Can an NRI Seller Do TDS Compliance if Buyer Refuses?
Yes, an NRI seller can do TDS compliance on behalf of the buyer. The simplest way is to appoint a jointly chartered accountant who can take care of both buyer and seller compliance. You can put up the charges for the buyer’s compliance, which is not much, and the CA will take care of the rest.
If you want to handle the compliance yourself, here’s what you need to do:
First, you need to take the buyer’s TAN number. The buyer has to provide their PAN card copy and address proof. With these two documents, you can get their TAN number.
The second step is to file the TDS challan. If you have applied for a lower TDS rate, the TDS rate will be mentioned in the TDS certificate. If you haven’t applied for a TDS rate, it will be 22.88 percent, and it can be more if the property value is higher. You can find the exact TDS rate applicable to your property in one of our videos.
Conclusion
NRI sellers can do TDS compliance even if the buyer refuses to do so. They can appoint a jointly chartered accountant to handle both their and the buyer’s compliance or pay for the buyer’s compliance package. It is important to understand the legal requirements and negotiate better for a fair price for their property.