Piyush Tanwar
(Assistant Manager - Accounts)
(1432 Points)
Replied 23 March 2017
Either your client is NRI or Resident, Your client has to pay capital gain as per the provisions of income tax.
Thanks & Regards
Piyush Tanwar
CA FInalist & Internal Auditor
Mobile - 9717468521
sandeep yadav
(Article Student)
(45 Points)
Replied 23 March 2017
Long term capital gain tax will be 22.66% if NRI is selling a property in India after holding it for more than 3 years. 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.
In case of sale of property by NRI, it is mandatory for buyer to deduct 20.66% TDS on the sale price of the property if capital gain is long term capital gain. In case of short term capital gain, TDS will be 33.99% irrespective of income tax slab of NRI.TDS is applicable even if value of property is less than 50 lakhs.
https://www.nitinbhatia.in/real-estate/nri-tds-sale-property/. Go through this link
shreya
(student)
(24 Points)
Replied 23 March 2017
Thanksss Sandeep yadav
Can u give me a favour
Please specify the relevant section and notifications
sandeep yadav
(Article Student)
(45 Points)
Replied 23 March 2017
NRI need not do anything.
Buyer should deduct TDS u/s 195.
If the seller is a foreign country of residence and has DTAA with Indian government i.e. lower rate of TDS is allowed. NRI need to submit a tax residency certification from the country of his residence.
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