Applicable TDS for Purchase of Flat from NRI

This query is : Open

Sukalyan Santra (Querist)
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11 July 2026
Subject: Guidance required on TDS under Section 195 for purchase of flat from NRI sellers

I am purchasing a residential flat in Kolkata from two NRI sellers (husband and wife), each holding a 50% share.

Details:

- Total sale consideration: ₹44,00,000
- Sellers purchased the flat in 2010 for approximately ₹25,00,000.
- Registration is planned for 29 July 2026.
- We (buyers) have already obtained TAN.
- I am purchasing the property with a home loan.
- The sellers have not provided any Lower/Nil TDS Certificate from the Income Tax Department.

I need guidance on the following:

1. How should TDS under Section 195 be calculated in this case?
2. Should TDS be deducted on the entire sale consideration or only on the estimated capital gains?
3. What TDS rate is applicable if the sellers do not provide a Lower/Nil Deduction Certificate?
4. Is surcharge and health & education cess applicable? If yes, how should the final TDS be computed?
5. Since there are two sellers with equal shares, should separate Form 27Q returns and separate Form 16A certificates be filed for each seller?
6. What documents should the buyer collect from the sellers to avoid any future tax liability?
7. Since a home loan is involved, what instructions should be given to the bank regarding release of the loan amount after deducting TDS?
8. Section 195 or Section 393 which one is applicable?

I would appreciate a detailed calculation and practical guidance to ensure full compliance.

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