Clarification on TDS Applicability under Section 195 for NRI Co-owner – Property Transaction

This query is : Resolved

Prannoy Chodankar (Querist)
Follow

24 March 2026 Dear Sir/Madam,

I would like to seek clarification regarding the applicability and rate of TDS under Section 195 of the Income-tax Act, 1961 in the following case:

A property is proposed to be sold for a total consideration of ₹1,000,000 jointly held by 5 co-owners. One of the co-owners is a Non-Resident Indian (NRI), holding an 20% share in the property, with corresponding sale consideration of Rs 20,00,000. Whether TDS under Section 195 is applicable on the NRI co-owner’s share of ₹2000000, even though the amount is below ₹50,00,000. need to now LTCG % + surcharge %+Cess = ?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

24 March 2026 TDS under Section 195 is applicable to the NRI co-owner's share, even if the amount is below ₹50,00,000.
The effective tax rates for Long-Term Capital Gains (LTCG) on property sales for NRIs, following updates in the Finance Act 2024, are as follows:
LTCG Tax Rate: 12.5% (without indexation) for properties sold on or after July 23, 2024.
Surcharge: 0% (Nil) for the NRI co-owner's specific share of ₹20,00,000, as it is below the ₹50 lakh surcharge threshold.
Health and Education Cess: 4% (applied on the tax amount).

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Arun Mahaldar

CA Sabrish Nair

REGIWISE CONSULTANTS PVT LTD

K.M. AGGARWAL

Ashif Cheenikkal

Subscribe Now

Clarification on TDS Applicability under Section 195 for NRI Co-owner – Property Transaction

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA