Q.1238 British citizen with OCI

selling Indian property will need

PAN

Question: Hello, I am a British citizen (I have a British passport) but have an OCI. My mother wants to sell our family home in Bangalore. I have a younger brother. Since my father left no will when he died, the legal team suggested that the buyer of our house should pay the amount in three parts....one for my mother, one for my brother and one for me. Do I need a PAN card for this transaction? I have not lived and worked in India for the last 19 years. Please advice. Many thanks. Answer: The buyer of the property will be obligated under India’s income tax rules to deduct TDS from the purchase price and submit the same to the income tax department. Hence; if as you suggest the buyer makes three payments to three different parties, he will need PAN numbers of all three. PAN card of anyone who is getting the sale proceeds of the property sold will have to be provided to the buyer so he can report and submit the TDS deduction money to the tax authorities in India. In many cases of property sales by NRIs who have no income in India, they may still have a capital gain tax liability and this is the purpose of the TDS deduction. NRIs can claim TDS deducted as a refund by filling a tax return in India. Here again a PAN card comes into play! To file income tax return in India a PAN is required.