Selling a property in India can be challenging, especially for Non-Resident Indians (NRIs). The process can be time-consuming, complicated, and frustrating, leading to many NRIs selling their properties for less than their actual worth. In this article, we will discuss expert tips for NRIs selling property in India to make the process smooth and profitable.
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Expert Tips from CA Arun Kumar Tiwari
Chartered Accountant Arun Tiwari is an expert in property matters, international taxation, and helping the NRI community. NRIs face several issues when selling their property in India, and Tiwari highlights the most significant ones. NRIs have a lack of time, and understanding of tax laws, and often approach the selling process incorrectly. Tiwari’s expert tips for NRIs cover critical solutions for these issues, including planning ahead, hiring a reputable broker, understanding tax laws, conducting due diligence, pricing the property correctly, and taking the right steps to ensure a smooth process.
Know More: Understanding TDS Provisions for NRIs Selling Property in India
Consult CA Arun Tiwari for more info at 📞 8080088288 or cs@aktassociates.com
The Problems Faced by NRIs Selling Property in India
The first issue NRIs face when selling their property in India is a lack of time. NRIs often plan their property sale while on a short vacation to India, making it difficult to complete the process efficiently. The second issue is their lack of understanding of tax laws, leading to errors in tax payments, delays, and additional expenses. Lastly, NRIs’ approach to selling their property is often not right, as they tend to trust one broker, creating delays and hassles.
Solutions for NRIs Selling Property in India
To ensure a smooth and profitable transaction while selling property in India, NRIs must take the right approach.
- They should plan their property sale in advance, allowing sufficient time to understand the process, find a reliable broker, and gather all necessary documents.Â
- It’s essential to hire a reputable broker who can help navigate the legal and taxation system while ensuring a fair price for the property.Â
- NRIs should educate themselves on Indian tax laws and regulations to avoid tax penalties and delays. It’s essential to pay attention to the capital gains tax, TDS, and other tax obligations.Â
- NRIs should conduct thorough research on the property, including its history, legal status, and outstanding debts, before listing it for sale.Â
- NRIs should set a fair and competitive price for their property to attract potential buyers and receive the best possible price.
Three Steps to Solve Common Property Issues and Get a Better Price for NRIs
NRIs should take three specific steps to solve common issues and get a better price for their property. First, have at least one to one and a half months before starting the process. Second, consult a good chartered accountant before meeting a broker. Often, brokers are unable to guide NRIs properly on issues such as tax rates and deductions. Third, approach multiple brokers and post the property directly on websites such as nobroker.com to get good, genuine buyers and have more options.
During the sale, it is crucial to keep arguments ready in advance for any arguments that buyers or brokers may use as bargaining chips. Keeping a clear head and avoiding showing any signs of urgency is crucial. Giving the impression of being in a hurry can lead to stressful sales and lower prices.
After concluding the sale, there are still important steps to take. The choice of a CA, who pays the TDS and tedious return, and who shares the society transfer cost are all important considerations. NRIs should also be ready with incidental costs and ensure that they have the necessary paperwork to avoid issues later on. A chartered accountant plays a vital role in the entire process. Before the sale, the CA provides advice on the lower TDS and taxes. After the sale, the CA helps ensure that NRIs have all the necessary paperwork and understand their
Conclusion
Selling a property in India as an NRI can be a challenging process. However, by following the expert tips outlined in this article, NRIs can ensure a smooth and profitable transaction. Planning ahead, hiring a reputable broker, understanding tax laws, conducting due diligence, and setting a fair price are all critical components of a successful sale. Additionally, approaching multiple brokers, keeping a clear head during negotiations, and having a good chartered accountant on hand can help NRIs avoid common pitfalls and ensure that they receive the best possible price for their property. By taking these steps, NRIs can avoid bitter experiences and make the selling of their properties a pleasurable experience.