Real estate is a preferred investment asset for merchant navy officers. However, tax compliance when buying or selling Indian property differs fundamentally depending on residency status.
Buying Property in India
An NRI seafarer can freely purchase residential or commercial real estate in India using funds from an NRE or NRO account. When buying from a resident seller for above ₹50 Lakhs, you must deduct 1% TDS under Section 194-IA using Form 26QB.
Selling Property in India (Section 195)
If you sell Indian property while having NRI status, the buyer is required under Section 195 to deduct up to 20% plus surcharge and cess (approx. 23.92%) on the gross sale value! To avoid having huge funds blocked, you must apply for a Form 13 Lower TDS Certificate from the Income Tax Department.