Tds on nri property purchase

TDS deduction when the seller is NRI........ will be at 22.66% (10% surchage for above 1 CR.) for property held for more than 3 years, (reduced to 2 years from this FY).

In case holding period is less than 3 years then Short Term Capital Gain Tax will be applicable as per income tax slab. In case of short term capital gain, TDS applicable will be 33.99% irrespective of tax slab of the NRI.

If payment is made to a Non-Resident then section 194-IA will not be applicable, which provides 1 % TDS deduction for property purchased from RESIDENT INDIAN
 

You will also be required to obtain TAN no for each purchaser/s. For details refer:

Alternatively, NRI Seller may apply u/s. 197 of IT act, for ‘Nil’ or ‘TDS at reduced rate’ order from the income-tax officer. The income-tax officer, upon your application, will issue a certificate stating that ‘Nil’ TDS or ‘TDS at reduced rate’ will be applicable for the said transaction.  Details refer: