TDS on Sale of House Property by NRI to Resident

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swasti (Querist)
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15 February 2020 An NRI having a house property in India wishes to sell it to a Resident. The sale price exceeds Rs 50 Lakhs. What TDS has to be deducted by the resident - 1% or 20%? Kindly advise.
The NRI is having PAN in India.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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15 February 2020 22.88% TDS under section 195 has to be deducted.

swasti

swasti (Querist)
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15 February 2020 Thanks a lot Sir for the expert advise. That means the purchaser has to apply for TAN. Is it?

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Gokul Sharma

Gokul Sharma (Expert)
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15 February 2020 TDS on immovable property has to be paid using Form 26QB within 30 days from the end of the month in which TDS was deducted
no tan no required.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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15 February 2020 TAN is necessary to deduct TDS

26QB not applicable to NRI seller.

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CA Mukesh Jain S

CA Mukesh Jain S (Expert)
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15 February 2020 TDS will be deducted @ 22.88% u/s 195 on full consideration if the gain is long term. If gain is short term then it is @ 34.32% ie., Tax+ Scharge+ cess. The NRI can apply for lower deduction with AO in form 13 stating that TDS needs to be done only on gain part rather than full value of consideration.

swasti

swasti (Querist)
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16 February 2020 Thanks a lot for the expert suggestions.