TDS Applicability for an NRI

SENTHIL SELVENDRAN (chartered accountant) (201 Points)

12 November 2024  

My client purchased a property from an NRI and we have deducted 20% Plus Cess and Surcharge. 

Later the TDS processed with defaults and intimated that the applicable rate is 30%. They have raised demand for short deduction.

1.What is the actual rate of TDS when we are buying property from an NRI?

2.Before we deducting the TDS, whether we need to assess the property holding period if any?