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What tds % to be deducted by buyer for property from NRI seller assuming selling is making LTGC
Hi Ankit, Buying a property from an NRI will require deducting TDS at 12.5% on the sale price under Section 195, assuming it is a long-term capital gain and the transfer took place on or after July 23, 2024. If it was before this date, then the rate will be 20% on the sale price. Surcharges will beRead more
Hi Ankit,
Buying a property from an NRI will require deducting TDS at 12.5% on the sale price under Section 195, assuming it is a long-term capital gain and the transfer took place on or after July 23, 2024. If it was before this date, then the rate will be 20% on the sale price.
Surcharges will be applicable at 10% if the sale consideration is between 50 lakhs to 1 Cr and 15% if more than 1 Cr.
Health and Education cess @ 4% applicable on the tax additionally.
Please read my previous answer for the details on the process of deduction.
See lessIs the Notarization or Registration of a will mandatory?
No, Notarization or Registration of a Will is Not Mandatory under Indian Law.But both are optional legal steps that can help reduce disputes and strengthen the Will’s authenticity. Section 63 of the Indian Succession Act, 1925: It lays down only three mandatory conditions for a valid Will: It must bRead more
No, Notarization or Registration of a Will is Not Mandatory under Indian Law.But both are optional legal steps that can help reduce disputes and strengthen the Will’s authenticity.
Section 63 of the Indian Succession Act, 1925:
It lays down only three mandatory conditions for a valid Will:
It must be in writing.
Signed by the testator.
Attested by two or more witnesses.
Also, Section 18(e) of the Registration Act, 1908 says that
See lessCan I mentioned my ancestors property in to my will?
Hi You can mention ancestral property in your Will only to the extent of your own share.You cannot will the entire ancestral property if it belongs to a Hindu Undivided Family (HUF) or is undivided. To avoid future disputes: Clearly state in the Will whether the property is self-acquired or ancestraRead more
Hi
You can mention ancestral property in your Will only to the extent of your own share.
You cannot will the entire ancestral property if it belongs to a Hindu Undivided Family (HUF) or is undivided.
To avoid future disputes:
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See lessClearly state in the Will whether the property is self-acquired or ancestral.
If it is ancestral and you are bequeathing only your share, mention it specifically.
You may include a declaration in your Will like:
Should I mention the property assets in will where nomination have been filed? What will be impact on nomination of this effect?
Hi Nomination gives a person the right to receive, but not necessarily the right to own the asset permanently. Nomination is governed by sectoral laws such as: Section 39 of the Insurance Act, 1938 (for insurance policies), Companies Act, 2013 (for shares/securities), Banking Regulation Act (for banRead more
Hi
Nomination gives a person the right to receive, but not necessarily the right to own the asset permanently.
Nomination is governed by sectoral laws such as:
Section 39 of the Insurance Act, 1938 (for insurance policies),
Companies Act, 2013 (for shares/securities),
Banking Regulation Act (for bank accounts),
EPF Act (for PF/Gratuity),
Co-operative Societies Acts (for housing societies).
Nomination only authorizes a nominee to receive the asset upon the death of the holder — not to inherit it.
The Supreme Court in Sarbati Devi v. Usha Devi (1984) held:
This means:
So, Always mention the details of the property in the will even though nomination is made.
See lessCan share in the property of Hindu Undivided Family be bequeathed under will?
Yes, a share in the property of a Hindu Undivided Family (HUF) can be bequeathed under a Will, but this depends on whether the person has an independent right over the share at the time of death. Let's understand this with proper legal context, sections, and examples under Hindu Succession Act, 1956Read more
Yes, a share in the property of a Hindu Undivided Family (HUF) can be bequeathed under a Will, but this depends on whether the person has an independent right over the share at the time of death. Let’s understand this with proper legal context, sections, and examples under Hindu Succession Act, 1956, and the Indian Succession Act, 1925.
Legal Position: Can HUF Property Share Be Bequeathed via Will?
1. No Individual Ownership in Undivided HUF Property
In a running HUF, no coparcener (member) has a fixed or identifiable share unless a partition has taken place.Therefore, during the existence of an HUF, a coparcener cannot WILL a specific portion of HUF property.
2. Exception: After Partition or Death of Coparcener
If:
The HUF is partitioned (even notional), or
The person dies (and thereby his share in HUF becomes clear),
Then the deceased coparcener’s share can be bequeathed through a Will.
Legal Provisions Involved
Supreme Court’s Clarification
In Gurunath Radhakrishna vs. Raghunath Radhakrishna (2011), the Court held that:
“A coparcener can dispose of his undivided share in HUF property by Will, subject to his share being ascertainable.”
See lessHow to protect the interest of minor child through will?
The Indian Succession Act, 1925 provides the legal framework to secure their financial and personal welfare. Key Steps to Safeguard Minor's Interest in a Will 1. Mention the Minor as a Beneficiary Clearly state in the Will that a portion or full part of the property/assets is to be inheritedRead more
The Indian Succession Act, 1925 provides the legal framework to secure their financial and personal welfare.
Key Steps to Safeguard Minor’s Interest in a Will
1. Mention the Minor as a Beneficiary
Clearly state in the Will that a portion or full part of the property/assets is to be inherited by the minor child.
Example clause:
“I bequeath ₹10 lakhs and 50% share of my residential house to my minor son [Name], aged [X years].”
2. Appoint a Guardian for the Minor (Section 60)
If both parents are not alive or the surviving parent is not deemed fit, the Will should name a guardian for the minor.
Under Section 60 of the Indian Succession Act, 1925, you may appoint a guardian for a minor child through a Will.
“In the event of my death, I appoint my sister [Name] as the guardian of my minor son [Name] until he attains the age of majority.”
3. Create a Trust or Appoint an Executor/Trustee
Until the minor reaches 18 years, he/she cannot legally own property. Hence, create a trust or appoint a trustee in the Will to manage the assets.
Example clause:
“I direct that the assets be held in trust by [Name] until my child attains 18 years of age, and the income be used solely for education, living, and welfare.”
4. Specify the Use of Funds
Mention in the Will how the funds should be used — for education, health, marriage, or day-to-day living.
This ensures that the appointed guardian/trustee doesn’t misuse the money.
5. Ensure Proper Safeguards
You can include conditions such as:
- Separate bank account for the minor’s funds.
- Periodic reporting by guardian/trustee.
- Joint trusteeship, if required.
See lessWhen a will can be changed and what will be impact on old will?
When Can a Will Be Changed? A Will can be changed at any time during the lifetime of the person who made it (testator) as long as they are of sound mind. There is no limit to how many times a Will can be changed. Changes can be made in two ways: By Executing a New Will: This is the most common and sRead more
When Can a Will Be Changed?
A Will can be changed at any time during the lifetime of the person who made it (testator) as long as they are of sound mind.
There is no limit to how many times a Will can be changed.
Changes can be made in two ways:
By Executing a New Will:
This is the most common and safest method.
The latest Will revokes all previous Wills automatically if it clearly says so.
By a Codicil:
A codicil is a written and signed document that modifies certain parts of the existing Will without replacing it entirely.
It must be executed in the same manner as a Will (i.e., signed and attested by two witnesses).
Legal Impact on the Old Will
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See lessIf a new Will is made, the old Will becomes invalid from the date the new Will is executed—only the latest valid Will is enforceable.
If only a Codicil is made, then the original Will remains valid, but the specific changes mentioned in the codicil override the corresponding parts of the original Will.