Selling a property in India can be a complex process, especially if you are a non-resident Indian (NRI) living abroad. There are several legal and tax-related questions that you may face during the transaction, and it is essential to have a clear understanding of the regulations to avoid any legal or financial complications. In this blog, we will be addressing some of the common questions related to legal and taxation issues faced by NRIs while selling their property in India.
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One of the most frequently asked questions by NRIs is whether they have to pay taxes in both India and their country of residence. This is known as double taxation, and it can lead to a significant financial burden for NRIs. However, in most cases, NRIs do not have to pay taxes in both countries.
Read More about What is DTAA for NRIs?
Most countries have a Double Taxation Avoidance Agreement (DTAA) with India, which ensures that you only have to pay taxes in one country. There may be different tax rates in your resident country and India, and you may have to pay different taxes accordingly.
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For instance, if the tax rate in India is 20%, and in the UK, it is 30%, you will pay 20% tax in India and 10% tax in the UK. The DTAA agreement may differ depending on the country, and we will provide detailed information on this in another blog.
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It is also essential to note that there is a tax deduction at source (TDS) on the sale of property in India. If you wish to avoid TDS, you can apply for a lower TDS deduction by filing Form 13 online. We will provide a detailed procedure for filing Form 13 to get a lower tax deduction rate in another blog.
If you have any other legal or tax-related questions regarding selling property in India, such as the power of attorney or other related issues, you can reach out to us in the comment section or email us your question. While there will be no fees for general questions, we may charge fees for specific, proprietary questions that require calculations or analysis. However, these fees can be adjusted when you give us work related to end-to-end compliance or anything relevant to lower TDS. Our team will be happy to assist you with any questions or concerns you may have.
In conclusion, selling property in India can be a complicated process, especially for NRIs. However, by understanding the legal and tax-related issues, you can ensure a smooth transaction. We recommend that you watch all the videos in this series to get a comprehensive understanding of the regulations and procedures involved. Please provide us with your feedback as it helps us improve our services.