I want to buy a flat in Mumbai from a person staying abroad for more than 12-13 years. He is neither having Indian citizenship,nor filing IT return, nor having Indian PAN No. nor any Bank a/c.
He purchased flat in 1989 at Rs. 1.50 lacs & sell at Rs. 17 lacs.The agreement can be signed in Sept.2008.
My questions are:
1.Is it must to have PAN No. of the seller for registration of Agreement?
2. Is Income Tax applicable to the transaction? How much?
3. How to pay TDS on capital gain?
4. What are the precautions/approvals required to be obtained by the seller or me?
Yes PAN Card of the seller would be required for the seller as he will be required to file Income Tax Return & pay Income Tax on the Long Term Capital Gain that he is earning through this deal. You are not required (in fact authorised) to make TDS from the consideration amount. Paying Income Tax is the sole responsibility of seller. As far as other approvals / precautions are concerned (since the transaction involves a foreign citizen) It is advisable to consult a good Lawyer as those precautions are almost imopssible to list out at here.