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TDS on buying property from Non Resident Imdian (NRI)

342 views 1 replies

Mudit

salaried

39 Points Joined October 2008

Hi everyone,

Could you please help clarify below queries related to buying property from NRI -

1. What is the rate at which tds needs to be deducted while buying property from NRI

2. Can seller directly deduct and submit the tds to IT Department or only buyer can do that

3. Is TAN mandatory for buyer to deduct TDS when buying property from NRI

4 what is the process to be followed and forms to be filled by buyer to deduct the TDS

Thanks in advance

Replies (1)

CA Rashmi Gandhi

Chartered Accountant

86505 Points Joined April 2011

1. When an NRI sells property, the buyer is liable to deduct TDS @ 20%+4%EC. In case the property has been sold before 2 years(reduced from the date of purchase) a TDS of 30% shall be applicable.

2. Only Buyer

3. TAN is mandatory

4.The buyer is required to deposit the TDS with Govt. within 7 days from the end of the month in which the TDS has been deducted. (Challan No – 281) The buyer is required to submit the TDS return in Form 27Q.