Income tax rules you should know when buying property from joint owners

The proviso of taxation deduction@ 1% nether Section 194-IA for purchasing a spot is applicable erstwhile the seller is simply a resident, and the property's worth exceeds ₹50 lakh. In your case, arsenic acold arsenic the nonmigratory seller is concerned, you tin discharge your liability by deducting taxation @ 1% connected 29 lakhs. As acold arsenic the non-resident co-owner is concerned, you indispensable comply with provisions of Section 195 of the Income Tax Act, which requires immoderate idiosyncratic paying immoderate wealth to a non-resident to deduct taxation astatine root astatine the rates successful force.

The taxation complaint for long-term superior gains is 20% connected the indexed profits. If you tin get the applicable documents for moving retired the superior gains based connected the outgo of acquisition and day of purchase, you request to deduct taxation astatine 20% connected specified taxable superior gains successful lawsuit the spot was held for much than 2 years by the seller. If the holding play is little than 2 years, you indispensable deduct taxation @ 30%. If the seller is unwilling to stock the documents, you indispensable deduct taxation for the magnitude paid astatine these rates. Please enactment that you indispensable get a taxation to deduct taxation from outgo being made to a non-resident. Deduction Account Number (TAN)is not required if the seller is simply a resident.

Balwant Jain is simply a taxation and concern adept and tin beryllium reached astatine jainbalwant@gmail.com and connected @jainbalwant connected Twitter.

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Published: 28 Jun 2024, 02:34 PM IST