Property and Legal Articles by Adithya Kamath
TDS on Property Purchase from NRI: 2026 Guide
When you buy property in India from an NRI, the TDS rules are different from a purchase from a resident seller. The buyer generally has to deduct tax under Section 195 of the Income-tax Act, 1961, where the payment is chargeable to tax in India. The applicable rate depends on the nature of the NRI seller's capital gain and other tax provisions. The Income Tax Department currently lists 12.5% for specified long-term capital gains on transfers from 23 July 2024 and 30% for short-term capital gains where the NRI is an individual or firm, before applicable surcharge and cess.
What Is TDS on Property Purchase? 2026 Guide
TDS on property purchase is the tax a buyer deducts from the amount payable to a seller when the property transaction falls under the applicable TDS rules. For a qualifying purchase of immovable property, the buyer deducts TDS and deposits it with the Central Government. From 1 April 2026, the applicable process for these transactions is covered under the Income-tax Act, 2025 and reported through Form 141, Schedule B.
Capital Gains Tax on Property Sale: 2026 Guide
If you sell a house, flat, plot, or land for a profit, the profit may be taxable as a capital gain. For land or buildings, the property is generally treated as a long-term capital asset when it has been held for more than 24 months. For applicable long-term transfers, the current tax rate is 12.5% without indexation, with a special calculation available to eligible resident individuals and HUFs for certain properties acquired before 23 July 2024.
MOU vs Contract: Key Differences Under Indian Law
An MOU vs contract comparison mainly comes down to the legal effect of the document and the obligations the parties agree to undertake. An MOU can record a shared understanding or intentions, while a contract creates enforceable obligations when the requirements of a valid contract are met. However, an MOU isn't automatically non-binding simply because it is called an MOU. Its wording and the nature of the commitments matter.
What Is MOU in Property? Meaning, Purpose and Key Details
An MOU in property means a Memorandum of Understanding that records the understanding between parties about a proposed property transaction. It can set out details such as the property, proposed price, payment terms, responsibilities and expected timeline. An MOU is generally used at an earlier stage of a transaction and does not itself transfer ownership of the property.
What Is Encumbrance Certificate? Meaning, Uses & Details
An Encumbrance Certificate (EC) is an official property record that shows registered transactions recorded against a property for a specific period. It can show entries such as sale, mortgage, gift, release or other registered transactions. In Karnataka, EC records are connected with the registration records maintained through the Sub-Registrar system.
EC Form 15 vs Form 16: Key Differences Explained
Form 15 and Form 16 are two different formats of an Encumbrance Certificate search. Form 15 records registered transactions found against a property during the selected period, while Form 16 is a nil certificate showing that no registered transactions were found for that period. The result depends on the property details and search period used for the EC. A Form 15 is not automatically a problem, and a Form 16 does not by itself prove that the property has a clear title.
What Is Occupancy Certificate? Meaning, Uses & Importance
An Occupancy Certificate (OC) is a document issued by the competent local authority confirming that a completed building can be occupied under the applicable building rules. In Kannada, it is commonly understood as “ವಾಸಯೋಗ್ಯ ಪ್ರಮಾಣಪತ್ರ” (Vaasayogya Pramanapatra). For an apartment buyer, the OC is an important document to check before taking possession or buying a resale property.