“When purchasing houses owned by way of NRIs, consumers are mandated to withhold tax at the taxable capital good points. However, in apply, many consumers make a selection to withhold tax at the product sales attention to keep away from possible tax headaches. While this manner simplifies the method for consumers, it frequently leads to NRIs paying extra tax in advance than what corresponds to their precise source of revenue.
“To alleviate this issue, NRIs typically apply for a lower withholding tax certificate. While this can reduce the initial tax burden, obtaining the certificate is often a lengthy and cumbersome process. Moreover, these certificates are generally issued as a percentage of the sales consideration, rather than being directly linked to the capital gains derived from the transaction. This mismatch can still leave NRIs with an upfront tax burden, necessitating refund claims.
“Streamlining the TDS procedure for NRI belongings transactions and aligning the withholding procedure with that of resident dealers, the place tax withholding is without delay attached to gross sales attention alongside the strains of the resident, will ease the compliance burden for NRIs and scale back administrative burden, too.”
