Apartment sale- tds- help kaavali

[Poonam]

naa friend us citizen. India lo apartment ammuthunnadu. CA tho maatladithet TDS 23.5% paduthundi antunnadu. vaadu dec lo aameyyali. Ippudu antha taxes poyaka , aa money ikkadiki techukunte vaaniki migiledi emi undadu anta. tickets kooda booked. ippudu backout avaledu ammakunda and he is need of money. tds ela tagginchukovali. meeku telsina CA unte cheppandi helop chesevaallu.

buyer sale deed lo 1% ani pedithey ok anta buyer 23% padithey anthe kattali anta. evarina similar situation lo undi unte ela taxes bachayincharu koncham cheppandi.

[jefferson1]

28 minutes ago, Poonam said:

naa friend us citizen. India lo apartment ammuthunnadu. CA tho maatladithet TDS 23.5% paduthundi antunnadu. vaadu dec lo aameyyali. Ippudu antha taxes poyaka , aa money ikkadiki techukunte vaaniki migiledi emi undadu anta. tickets kooda booked. ippudu backout avaledu ammakunda and he is need of money. tds ela tagginchukovali. meeku telsina CA unte cheppandi helop chesevaallu.

buyer sale deed lo 1% ani pedithey ok anta buyer 23% padithey anthe kattali anta. evarina similar situation lo undi unte ela taxes bachayincharu koncham cheppandi.

Tds 1 % anukunta 

[chantigaduUS]

30 minutes ago, Poonam said:

naa friend us citizen. India lo apartment ammuthunnadu. CA tho maatladithet TDS 23.5% paduthundi antunnadu. vaadu dec lo aameyyali. Ippudu antha taxes poyaka , aa money ikkadiki techukunte vaaniki migiledi emi undadu anta. tickets kooda booked. ippudu backout avaledu ammakunda and he is need of money. tds ela tagginchukovali. meeku telsina CA unte cheppandi helop chesevaallu.

buyer sale deed lo 1% ani pedithey ok anta buyer 23% padithey anthe kattali anta. evarina similar situation lo undi unte ela taxes bachayincharu koncham cheppandi.

?? Buyer deducts the money and pays the tax right? 1% antey..only Non NRI ayithey nemo..ikkadiki techukovali antunnadu antey..dont think there is any way to avoid the 23 %

[Poonam]

Buyer sale deed lo NRI ki sale chesthunna ante vaalla CA 23% vraasthey manam adi pay cheyyali anta. or else Income tax dept ki request chesthey waive chestharata but it takes minimum 1 -2 month. naa cousin has to sell this property by 27th dec. 

Buyer entha raastharu NRIs daggara konte Sale deed lo. please help cheyyandi evarikina telisthey. already konna price ke ammuthunnadu malla TDS intha ante asalu loss lo property sale chesinatte. also, govt ki kattaka, tax file chesthey usual ga as per givt rules, refund cheyyalia nta but adi refund vasthadoo eppudu vasthdoo kooda teleedu antadu CA. 

meeku evarina CA telisi unte koncham cheppandi

[Poonam]

....

[jathin]

3 hours ago, Poonam said:

naa friend us citizen. India lo apartment ammuthunnadu. CA tho maatladithet TDS 23.5% paduthundi antunnadu. vaadu dec lo aameyyali. Ippudu antha taxes poyaka , aa money ikkadiki techukunte vaaniki migiledi emi undadu anta. tickets kooda booked. ippudu backout avaledu ammakunda and he is need of money. tds ela tagginchukovali. meeku telsina CA unte cheppandi helop chesevaallu.

buyer sale deed lo 1% ani pedithey ok anta buyer 23% padithey anthe kattali anta. evarina similar situation lo undi unte ela taxes bachayincharu koncham cheppandi.

Hello bedaru,

It depends on options… how you want to handle the apt sale. 

if you selling as USA citizen… what you stated above is correct. Here’s the breakdown of the amounts for approximately 23%.

1% is TDS and remaining 21.8% of the sale price amount totals to approximately 23% will need to be paid by the buyer as TDS in name of the seller using his PAN card or passport. And the buyer will deposit the amount into Seller NRI bank acct. And the seller (NRI) should file his taxes in India and claim his tax returns. Taxation will be calculated around 20.8% only on the capital gain amounts and will be deducted from the 23% that buyer paid on your behalf and the remainder of the amount will be returned back to your bank acct.

And then you can transfer your rupees from your NRI bank acct to USA bank acct. The Indian bank will ask for your tax filing and the receipt of the 23% amount paid by the buyer on your behalf.
Note: Don’t forget to collect this 23% TDS amount paid receipt from the buyer. You need this receipt for your Indian tax filing and for transferring the rupees to USA bank ($).

and these india paid taxes should be reported in USA tax filing too.

PM me if you need more details. 

[chantigaduUS]

36 minutes ago, jathin said:

Hello bedaru,

It depends on options… how you want to handle the apt sale. 

if you selling as USA citizen… what you stated above is correct. Here’s the breakdown of the amounts for approximately 23%.

1% is TDS and remaining 21.8% of the sale price amount totals to approximately 23% will need to be paid by the buyer as TDS in name of the seller using his PAN card or passport. And the buyer will deposit the amount into Seller NRI bank acct. And the seller (NRI) should file his taxes in India and claim his tax returns. Taxation will be calculated around 20.8% only on the capital gain amounts and will be deducted from the 23% that buyer paid on your behalf and the remainder of the amount will be returned back to your bank acct.

And then you can transfer your rupees from your NRI bank acct to USA bank acct. The Indian bank will ask for your tax filing and the receipt of the 23% amount paid by the buyer on your behalf.
Note: Don’t forget to collect this 23% TDS amount paid receipt from the buyer. You need this receipt for your Indian tax filing and for transferring the rupees to USA bank ($).

and these india paid taxes should be reported in USA tax filing too.

PM me if you need more details. 

this is valid if seller is NRI ( i.e. registration is on NRI name) correct? Can NRI's buy agri land, i think no, but wanted to check again.  Also lets say as an NRI I sent X amount and Invested that in a property(like an apt or commercial complex), now after 2 years - he made the sale which is 2 times X amount. so TDS would apply on 2X amount or just X Amount ? I am asking this because what sent originally is a taxed income from US or abroad. thx

[chef]

It’s become a lot difficult for NRIs to sell properties in india, especially flats.

NRI ani declare cheyali and buyer has to deduct 23% and pay tds. 
 

seller has to later claim that amount by filing taxes.

It’s better for NRIs to syop investing in apartments or houses in india. 

[jathin]

12 hours ago, chantigaduUS said:

this is valid if seller is NRI ( i.e. registration is on NRI name) correct? Can NRI's buy agri land, i think no, but wanted to check again.  Also lets say as an NRI I sent X amount and Invested that in a property(like an apt or commercial complex), now after 2 years - he made the sale which is 2 times X amount. so TDS would apply on 2X amount or just X Amount ? I am asking this because what sent originally is a taxed income from US or abroad. thx

Bedaru - Nuvvu nijangaa USA citizen (NRI) yee naa ?

I am asking b’cos … if you are USA citizen why are you still thinking of re-investing in India.

If you are a USA or other country citizen- it makes sense to dispose your old investments in India and consolidate them in USA or other countries that you reside.

Moving forward, considering the new tax reforms and banking reforms … there is no scope for NRI’s investing in India and making profits. Those old golden days are gone (it done and dusted).

Currently, there’s high real estate prices (whether it’s residential, commercial or agricultural lands). In recent times both in Telangana and Andhra .. both govts have imposed higher registration charges by increasing the land prices, broker charges are high, profits are very minimum and top of it you need to pay capital gains and file taxes, and the dollar appreciation by the time you bring you invested amount back to USA will become a disastrous effort and will face many hassles during sale.

better do your investments in the country you reside. Dollar currency is always strong compared to other countries currencies. So, convert your rupees into USA dollars.

[jathin]

7 minutes ago, jathin said:

Bedaru - Nuvvu nijangaa USA citizen (NRI) yee naa ?

I am asking b’cos … if you are USA citizen why are you still thinking of re-investing in India.

If you are a USA or other country citizen- it makes sense to dispose your old investments in India and consolidate them in USA or other countries that you reside.

Moving forward, considering the new tax reforms and banking reforms … there is no scope for NRI’s investing in India and making profits. Those old golden days are gone (it done and dusted).

Currently, there’s high real estate prices (whether it’s residential, commercial or agricultural lands). In recent times both in Telangana and Andhra .. both govts have imposed higher registration charges by increasing the land prices, broker charges are high, profits are very minimum and top of it you need to pay capital gains and file taxes, and the dollar appreciation by the time you bring you invested amount back to USA will become a disastrous effort and will face many hassles during sale.

better do your investments in the country you reside. Dollar currency is always strong compared to other countries currencies. So, convert your rupees into USA dollars.

Andhra lo re-Investments aithee sanka naakipoyinatte .. especially now 😀😀

[Poonam]

1 hour ago, jathin said:

Bedaru - Nuvvu nijangaa USA citizen (NRI) yee naa ?

I am asking b’cos … if you are USA citizen why are you still thinking of re-investing in India.

If you are a USA or other country citizen- it makes sense to dispose your old investments in India and consolidate them in USA or other countries that you reside.

Moving forward, considering the new tax reforms and banking reforms … there is no scope for NRI’s investing in India and making profits. Those old golden days are gone (it done and dusted).

Currently, there’s high real estate prices (whether it’s residential, commercial or agricultural lands). In recent times both in Telangana and Andhra .. both govts have imposed higher registration charges by increasing the land prices, broker charges are high, profits are very minimum and top of it you need to pay capital gains and file taxes, and the dollar appreciation by the time you bring you invested amount back to USA will become a disastrous effort and will face many hassles during sale.

better do your investments in the country you reside. Dollar currency is always strong compared to other countries currencies. So, convert your rupees into USA dollars.

this is very true. His situation was totally different at the time of purchase. Due to covid and all his plans have been changed and selling the apartment to get the money back to here. papam hard earned money vaa, profit kooda em ammatledu. time bagoleka ee oka wrong investment lo stuck ayina money teesukodam kosam inka idi konnadu. now he is regretting. 

[cup_saucer]

just ask if family member who is not NRI ki gift deed chesi sale chesthe emaina use unda ani. gift deed ki stamp duty 6-8% of market value untadi. malli valu sale chesthe apudu stamp duty entha untadi. capital gain tax ela calculate chestharu valaki as they just received kabatti adi kuda chudandi. even i was thinking to sell some property but tdse profit motham thinesthundi for NRI. solution edi ochina pls post here

[jathin]

1 hour ago, cup_saucer said:

just ask if family member who is not NRI ki gift deed chesi sale chesthe emaina use unda ani. gift deed ki stamp duty 6-8% of market value untadi. malli valu sale chesthe apudu stamp duty entha untadi. capital gain tax ela calculate chestharu valaki as they just received kabatti adi kuda chudandi. even i was thinking to sell some property but tdse profit motham thinesthundi for NRI. solution edi ochina pls post here

If you do a gift deed .. the person who sells the property need to pay capital gains. And the capital gains is calculated based on the year and price the land was originally purchased.

the other alternative work around is not disclosing you are a NRI and making the sale as a Indian resident and still pay the capital gains and file taxes as Indian resident. You need AADhAAR, PAN, and Bank account to follow this regular process. 

[chantigaduUS]

3 hours ago, jathin said:

Bedaru - Nuvvu nijangaa USA citizen (NRI) yee naa ?

I am asking b’cos … if you are USA citizen why are you still thinking of re-investing in India.

If you are a USA or other country citizen- it makes sense to dispose your old investments in India and consolidate them in USA or other countries that you reside.

Moving forward, considering the new tax reforms and banking reforms … there is no scope for NRI’s investing in India and making profits. Those old golden days are gone (it done and dusted).

Currently, there’s high real estate prices (whether it’s residential, commercial or agricultural lands). In recent times both in Telangana and Andhra .. both govts have imposed higher registration charges by increasing the land prices, broker charges are high, profits are very minimum and top of it you need to pay capital gains and file taxes, and the dollar appreciation by the time you bring you invested amount back to USA will become a disastrous effort and will face many hassles during sale.

better do your investments in the country you reside. Dollar currency is always strong compared to other countries currencies. So, convert your rupees into USA dollars.

no I am not citizen but NRI does not mean always some other country citizen. see below link, all Indian Citizens living abroad are NRI's .  I am asking above question because I am planning to invest for a short period in India and get the money back to US( may be 2-3 years Horizon) so thats why I am trying to understand the process.

PS: I know few US citizens still invest in India and Have Lands. I know if you are Citizen of a Certain country you better keep the money and Invest itself there..but not sure how other are doing and what is their reasoning. For eg: Even thought you are a Citizen of USA, after you retire, you might want to live in India for few years and those properties can come handy 

 

[jathin]

46 minutes ago, chantigaduUS said:

no I am not citizen but NRI does not mean always some other country citizen. see below link, all Indian Citizens living abroad are NRI's .  I am asking above question because I am planning to invest for a short period in India and get the money back to US( may be 2-3 years Horizon) so thats why I am trying to understand the process.

PS: I know few US citizens still invest in India and Have Lands. I know if you are Citizen of a Certain country you better keep the money and Invest itself there..but not sure how other are doing and what is their reasoning. For eg: Even thought you are a Citizen of USA, after you retire, you might want to live in India for few years and those properties can come handy 

 

Moving forward, 99% of the times you will loose money if you invest in India and try to bring back the profits (by converting rupees into dollars). 

in my earlier posts, I have stated my reasons why you will loose money investing in India.