Q.1270 Residential status in

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Question: Dear Mr. Chand, Hello! Hope you are doing well. I just came across your website www.nriinformation.com where I could see lots of valuable information related to NRI Tax & Visa related matters. I would like to thank you for sharing such valuable information & helping people with a complex financial decision. Please note that I am have been going through a complex financial situation myself & need some advice. I am an OCI holder. I bought a property in India 2015 from my NRE/NRO account but property I got registered in my Wife/Mother joint name. Now I would like to sell the property & remit the proceeds back into my NRE/NRO Account. Please can you advice if this is possible? How can I get the proceeds back into my NRE/NRO Account. Does the seller have to deduct any TDS? My wife is NRI & my mother is a resident Indian. Thanks and regards. Answer: To transfer the sale proceeds of property sold in India by a NRI to an NRE bank account actually amounts to the same as remitting funds abroad. As NRE bank account funds can be accessed from anywhere in the world without any restriction. You will need a Chartered Accountant certificate to certify that taxes have been paid. So why not consult a CA and ask them to handle the entire transaction for you. TDS must be deducted by the buyer from the sale price as the buyer can be held responsible if NRI fails to pay taxes due. TDS on NRI owned property is higher [20%] whereas it is lower when property sold is owned by a resident of India. The ownership of your property is part NRI owner and part Indian resident. This raises the question if the buyer will want to take the risk of deducting lower TDS for part of the property sale price. I suspect buyers will want to deduct the full 20% TDS and submit the deducted TDS to tax authorities. The sellers would then claim refunds in case of excess TDS deduction by filling an Indian tax return. NRIs depending on their income in India may be able to get a waiver from the tax authorities in advance of the sale to avoid the higher TDS being withheld. An accountant can perhaps guide you in getting an exemption from the concerned tax office where the property is situated. Sending money abroad from India has never been easier. Even if the sale amount is divided between your wife and mother. Your wife being a non-resident can remit her share abroad through banking channels and the amount your mother receives can be remitted to you abroad through Liberalised Remittance Scheme. Under the LRS, all resident individuals, including minors, are allowed to remit up to US$ 250,000 per financial year. Check with an accountant. You can explore several options and take the route that suits you best.