25 May 2011
My query is regarding the purchase of a residential property from an NRI. (Property located in India)
Is tax u/s 195 deductible on the gross payment to the seller or is it on the amount of Capital Gains arising on such sale?
Eg. If the sale consideration is Rs.50 lakh and the cost to the seller was Rs.45 lakhs, TDS is to be deducted on Rs.50 lakh or Rs.5 lakh? And at what rate?