Flat sale by Not ordinarily Resident in India -TDS

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This discussion clarifies the Tax Deducted at Source (TDS) requirements when purchasing a flat from a Non-Ordinary Resident (NOR) of India. If the seller meets the definition of NOR under Section 6(6)(a) of the Income Tax Act, 1961, the buyer must deduct TDS at a rate of 1% as per Section 194-IA. This applies even if the seller is based in Dubai.

pjrao

pjrao (Querist)

19 January 2022 Can I buy flat from Not Ordinary Resident in India or Person of Indian origin from Dubai .Cost of flat 55 lakhs,how much TDS to be deducted and other documents required.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

19 January 2022 As per Section 6(6)(a) of Income Tax Act, 1961 an individual is a NOR if an individual who has been a non-resident in India in 9 out of 10 previous years preceding that year, or has during the seven previous years preceding that year been in India for a period of 729 days or less.
Do you mean to say the person is not ordinary resident as per the said definition?
If yes, sec. 194-IA would be applicable.

pjrao

pjrao (Querist)

19 January 2022 Yes sir NOR as per above definition under 6(6)(a).Can I buy flat from him and deduct TDS at 1%.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

19 January 2022 Yes, you can buy from RNOR without any doubt, with TDS deducted at 1%.

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