Kalpvriksha Realty Gurgaon’s Post

Buying your Dream Home from a NRI Seller, But do you know this TDS fact when an NRI is involved. Case Study: The Challenge of Financing a Dream Home Sameer found his dream home priced at ₹2.6 crore. He agreed with the NRI seller on a structured payment plan: - 10% as a token amount - 15% within a month - The rest after securing a home loan Sameer planned to finance ₹1.95 crore through a loan. However, his plan hit a roadblock when the bank informed him that the loan would not cover the 23.92% TDS (tax deducted at source) he needed to pay to the Income Tax Department. Understanding TDS in Property Transactions When buying property from an NRI, the buyer must deposit 20% of the total sale value as TDS. This often leads to cash flow issues, as banks do not finance TDS, treating it as part of the buyer's own contribution under LTV (loan-to-value) norms. Two Key Options for Buyers 1. Request a Lower TDS Certificate - The NRI seller can apply for this via Form 13 on the income tax portal. - This process can take up to two months and may require a chartered accountant. - Challenges include the seller's willingness and potential delays. 2. Use Downpayment for TDS - Educate the NRI seller about TDS provisions early in the deal. - Negotiate using part of the downpayment to cover TDS costs. --- Refinancing TDS: A Potential Solution Banks can refinance the TDS amount later, provided the buyer submits the registered title document and TDS challan. However, this often results in a top-up loan with higher interest rates. --- Final Thoughts Navigating the intricacies of property purchases, especially with NRI sellers, requires careful planning and informed decision-making. At Kalpvriksha Realty, we're here to support you through every step, ensuring a smooth and successful transaction. For more guidance and property options in Gurugram, reach out to us at: 📞 9625123042 ✉️ kalpvriksharealty@gmail.com At Kalpvriksha Realty, we turn your real estate dreams into reality. Stay informed and make smart property investments with Kalpvriksha Realty. #RealEstate #GurugramProperties #FirstTimeHomeBuyers #PropertyInvestment