Good Morning Mr. Mihir, I want to buy a flat in NCR area which belongs to a person who is working and living abroad. He have already paid an Advance money and after that i came to know that he falls in NRO Category, TDS on which is around 23% which is actually the Buyer responsibility. But he is saying that he do not fall in NRO Category and submitted his Indian PAN, Aadhar and Passport Copy in support of that. Now can you please help me out on this and confirm who i have to ensure that he doesn't falls in NRO Category and TDS will be deducted at normal rates i.e. 1%. So that there would not be any Tax obligation on my head after Sale Deed. Thanks in advance.......
Ans: In addition to PAN/Aadhar/Passport; it is advisable to check bank account in which amount is received. NRI usually take payment in NRE account.
Further, it is advisable to take declaration that seller is resident of India as per the provision of Income Tax.