Query – TDS on purchase of land from NRI under Income-tax Act, 2025

Save Share

This query is : Resolved

Avinash Jeevan Dsouza (Querist)

12 September 2026 A resident entity is purchasing land in India from a Non-Resident Indian (NRI).

The transaction/payment is proposed during FY 2026-27, i.e. after 01-04-2026, and therefore the provisions of the Income-tax Act, 2025 would apply.

I have the following queries:

Which section of the Income-tax Act, 2025 is applicable for TDS on purchase of immovable property from an NRI?
What should be selected under the "New Section" and "Section Code" while making the TDS payment?
The TDS portal is showing Section Code 1057 with a 30% rate. Is this the correct code for purchase of land from an NRI?
Is TDS required to be deducted at 30% on the entire sale consideration, or only on the taxable capital gain/income component?
If the NRI has held the land for more than 24 months and the transaction qualifies as Long-Term Capital Gain, what is the correct TDS rate under the new Act?
If the seller obtains a lower/nil deduction certificate, how should the TDS be handled?

Would appreciate guidance from members who have experience with NRI property transactions under the Income-tax Act, 2025, particularly regarding the correct section and section code to be selected on the TDS portal.

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

12 September 2026 Governing Section & Code: Section 393(2) [Table Sl. No. 17] under Code 1057.

Base Amount: TDS is calculated on the entire gross sale consideration unless an LDC is provided.

TDS Rates: 12.5% (plus surcharge and cess) for Long-Term Capital Gains (holding > 24 months); short-term or unverified cases attract applicable slab rates / up to 30%.

Lower Deduction: Always comply with any valid Lower/Nil Deduction Certificate issued under Section 395(1).

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