NRI Property Sale Simplified: 5 Checklists for a Stress-Free Transaction

Selling your property in India as an NRI (Non-Resident Indian) can be a breeze if you follow a few simple steps. Here are 5 handy checklists to keep your property sale smooth sailing!

Checklist #1: Get Your PAN in International Jurisdiction

Having your PAN (Permanent Account Number) under the international jurisdiction is crucial for a smooth property sale. Here’s why:

NRIs with international PANs can apply for lower TDS certificates.

• This reduces tax deductions at source during the sale.

Without an international PAN, your application might be stuck.

Take action:

Verify your PAN jurisdiction:

• Check online or contact your local Income Tax office.

Transfer your PAN if needed:

• Follow the steps outlined by the Income Tax Department for hassle-free transfer.

By completing this checklist early, you’ll avoid delays and ensure a smoother transaction when selling your property.

Checklist #2: Assemble Your Documentation for a Lower TDS Certificate

Being an NRI selling property in India means facing a TDS (Tax Deducted at Source) of 22.88% – a hefty chunk of change! To minimize this upfront tax burden, you can apply for a lower TDS certificate from the Income Tax Department.

The good news? You can streamline this process by having your documents ready beforehand. Here’s what you’ll need:

Property purchase documents:

• Proof you legally acquired the property.

Capital gain calculation:

• Shows the difference between your selling price and purchase price.

PAN (Permanent Account Number):

• Essential for any financial transaction in India.

TAN (Tax Deduction and Collection Account Number) – applicable if you have income in India

Bank Account Information (Beneficiary Account Number – BAN):

• Where you want the sale proceeds to be deposited.

Having these documents on hand saves you time and ensures a smoother transaction once you find a buyer.

Checklist #3: Apply for a Lower TDS Certificate with Form 13

Armed with your documents (from Checklist #2!), it’s time to leverage Form 13. This online application lets you request a lower TDS certificate, significantly reducing the upfront tax burden on your property sale.

Here’s what to expect:

Online application:

• File Form 13 electronically through the Income Tax Department portal.

Buyer’s TAN:

• You’ll need your buyer’s Tax Deduction and Collection Account Number (TAN). Encourage them to register for a TAN beforehand to avoid delays.

Jurisdiction review:

• The application goes to the Income Tax Officer in your international jurisdiction for processing.

Processing timeframe:

• Expect a decision within 30 days.

By completing this step, you’ll receive a lower TDS certificate specifying the exact amount of tax you need to pay, saving you money and streamlining the sale.

Checklist #4: Track Your Application and Share the Certificate

Stay informed: After submitting Form 13, keep track of its progress using the acknowledgement number. Politely follow up with the assessing officer if there are any delays. A smooth application process ensures a timely sale.

Empower your buyer: Once you receive the approved Form 13 specifying the lower TDS rate, provide it to your buyer. This document is crucial for them to submit to their bank during the loan disbursal process.

By staying informed and collaborating with your buyer, you’ll keep the sale moving forward efficiently.

Checklist #5: Settle Capital Gains Tax

Tax obligations: As with any property sale, you’ll be responsible for Capital Gains Tax in India. This tax is calculated based on the difference between your property’s purchase price (from your documents in Checklist #2) and the selling price.

Streamlined calculation: Having all your documents readily available simplifies the capital gains tax calculation process.

Remember: This tax needs to be settled after the sale is complete.

Stress-Free Sale for NRIs: Your Checklist Advantage

Selling your property in India as an NRI doesn’t have to be daunting. By following these five key checklists, you can navigate the process with confidence and minimize complications. From ensuring your PAN is in international jurisdiction to streamlining your TDS certificate with Form 13, these steps empower you for a smooth and successful sale.

Remember, preparation is key! Having your documents organized and understanding the tax implications upfront will save you time and ensure a stress-free transaction. Now you’re ready to sell your property with ease!

At NRI Assist Services, we help NRIs across the Globe to sell their properties. You can WhatsApp us: https://wa.me/message/2KGAATYMDLUPN1 or reach out at +91 9810915147.

Book a free 30-minute consultation here: https://calendly.com/30minscall .

Explore their offerings at https://nriassist.in. Cheers!