^®
TaxReply India Private Limited

Login     GST Library Tour

TaxReply India Pvt Ltd

🔒

Join on twitter

Join GST Group 121

Desktop
Tablet
Mobile

Tds

When you are buying a property from NRI then what Is the rate of tds. Is it 1% or 20%. 2) if a seller is providing pan no and aadhar card at the time of selling property and buyer deduct 1% but later on it is revealed that he is actually NRI then what is the liablity of buyeras far as tds provison is concerned

Dear Sanjay,

TDS on property purchased from Non-Resident is 20% u/s 195. (However TDS on property purchased from Resident is 1% u/s 194IA) 

If the buyer has not deducted full TDS, then as per section 163(1) buyer can be treated as an agent of Non-Resident and in that case, the balance of tax payable shall be recovered from buyer.

Further Please note that 20% TDS rate is on full amount paid and not the capital gains. However if Non resident feels that amount of TDS as calculated above is more that his final tax liability in India then either Non Resindent or the buyer can approach Assessing Officer for lower tax deduction certificate.

Also please note that in Law the word is NON-RESIDENT not NRI. Therefore whether a NRI is Resident or Non-Resident that has to be checked before deciding rate of TDS. And it depends on his days of presence in India during current year and last 4 years.

If you have any questions, Pl post the same.

Kind Regards
TaxReply.com





 

28
Apr

GST Calendar GST Diary
2021 2022 2023 2024	January February March April May June July August September October November December

S

M

T

W

T

F

S

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

28 Apr

30 Apr