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TDS on purchase of Property from Non Resident

SUYASH KORDE (Student) (136 Points)

25 April 2016

TDS on purchase of Property above Rs.50 lacs..
If recipient is Non-Resident, is TDS provisions applicable or not??..

I hv read every where I'm getting TDS to be deducted on resident only..

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5 Replies

Sandeep Sankaran (Chartered Accountant) (128 Points)
Replied 25 April 2016

in case of purchase of property from non resident section 195 will apply and TDS has to be made @ 30.9%

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SUYASH KORDE (Student) (136 Points)
Replied 25 April 2016

it means do buyer have to deduct TDS at 30.9% n pay to govt.

Sandeep Sankaran (Chartered Accountant) (128 Points)
Replied 25 April 2016

yes, the buyer needs to obtain tax deduction account number, deduct 30.9% of the sale consideration and pay it ot the government within 7th of the next month. quarterly TDS return also should be filed.

Vishal Goel (Chartered Accountant) (1688 Points)
Replied 02 May 2016

If the immovable property is purchased from a Non-Resident Indian (NRI) then TDS has to be done U/s 195 (TDS Rate is at 20%+Education Cess) and not under section 194IA.

Sandeep Ji 30% TDS rate is wrong.
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