NRI Seller not returning token advance
2 years ago
I liked a flat (5 years old) in Hyderabad, and paid 20,000 as token advance to the seller. He happens to be an NRI. I paid the token advance, and when to advocate for legal verification with the documents.
Later I came to know that according to section 195 of Income tax act, the buyer has an obligation to deduct TDS + LTCG tax in case of buying a property from an NRI seller. Further, in case of any shortcomings in the tax payment, the buyer would be held responsible by the IT department.
I share the details of this clause with my seller and told him that I am backing off from the deal in view of the impending risks I have as a buyer. When I told him about this, he said he would refund my token advance. But when I reminded him about it 4 days later, he said that I'll have to forfeit my token advance.
Can I demand him to return my token amount legally?
You can send a legal notice indicating that if the money is not returned within the specified time limit, legal action will be taken, and the receiver must respond. Following then, depending on the nature of your case, legal processes for civil remedies will be launched.
Thank you very much.
Ayantika Mondal @ Prime Legal
Responded 2 years ago
You can send a legal notice stating that if the money is not returned within the requisite time frame then a legal proceeding will be initiated to which the recipient is bound to reply. After which legal proceedings will be initiated for civil remedies depending upon the nature of your case.
Thank you.
Advocate Sinjari Bandyopadhyaya
Responded 2 years ago
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