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Tds when buying property from nri

Pramod Menon (Business Review Manager) (27 Points)

25 October 2016

HiWhat is the TDS deductible when buying property from NRI? If the NRI provides capital gain tax computation should the buyer still deduct TDS (u/s 195) or the lower value as per computation?

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (184781 Points)
Replied 25 October 2016

If you are buying property (such as site or house or flat) from a NRI, you have to do TDS (Tax Deducted at Source) @ 20.6% on the sale value of the property, as per section 195. The seller or the buyer can apply to Income Tax department for determination of the amount of tax on capital gain, by filling form 13. Based on the certificate of lower deduction issued by the Income Tax Officer, the seller can deduct lower taxes.