If someone has his own house in a city, then it has a different meaning. Buying a house is a dream of everyone from the beginning. People work very hard for this. They collect a lot of savings. Then with great difficulty, they c save enough money to buy a house. People pay attention to many things while buying a house. Like where is the place, and the structure of the house.

What is its price? Some Indian people have settled outside India. Such people want to sell property in India also. If you are also buying a house from such an NRI. Then you have to keep some things in mind. Because a house is not bought every day. A small mistake in this can cause you a loss of lakhs and crores.

If you buy a house from an NRI, keep these things in mind

While buying property, you have to follow Indian laws. If you buy property from an Indian citizen. Then there are different rules for this. If you buy from an Indian who is settled abroad, i.e. a non-resident Indian, then you have to follow certain rules of the Income Tax Act of India. You have to follow the process as per that. In the case of buying property from an NRI, the paperwork and other processes are a little difficult.

Understand the rules regarding tax
The taxation process is different from the normal one when buying property from an NRI. Under Section 195 of the Income Tax Act, if you buy property from an Indian, you have to pay a one percent tax. If you buy immovable property from an NRI, you have to pay 20% tax. If property worth up to Rs 50 lakh is bought from an Indian, then no tax has to be paid.

But if property worth less than Rs 50 lakh is bought from an NRI, then 20.80 percent TDS has to be paid. For property worth between Rs 50 lakh and Rs 1 crore, 22.58 percent TDS has to be paid. On the other hand, 23.92% TDS has to be paid on property worth Rs 1 crore. If the NRI does not pay the tax, then the department recovers the previous tax dues from the new owner of the property at an interest rate of 12%.

It is necessary to get a TAN

When you have to buy a property from an NRI, then under Section 195 of Income Tax, it is necessary to have a TAN (Tax Deduction and Collection Account Number) for TDS deduction. If you do a property deal and TDS is deducted without TAN, then a heavy penalty can be imposed on you by the Income Tax. If someone else is also a partner in the property with you, then he must have a TAN as well.

Ask the owner to stay in India till the property deal is done

Till the time your property deal with the NRI is completed and its registration is done, ask the NRI owner of the property to stay in India so that he can be present in front of the registrar. But if he is not present in the registrar's office during the deal. So you should find out to whom he has given the power of attorney to finalize the property deal.

Do not make the entire payment to a single owner

When you are buying property from an NRI, you should find out how many owners the property has. Because later if any dispute arises regarding the property, you may face difficulties. That is why find out all the owners and give an equal share of payment to all. Keep the details with you. Giving the entire payment to just one owner may lead to legal troubles in the future.

(PC: Freepik)