Surcharge on TDS on sale of property

This query is : Resolved

Quick Summary

For NRI property sale of Rs. 95 lakh, buyer must deduct TDS u/s 195 on full consideration if no lower tax certificate is available. Applicable TDS rate depends on LTCG or STCG, plus surcharge and 4% cess. Surcharge is also applicable even without knowing seller's total income.

Suresh S. Tejwani

Suresh S. Tejwani (Querist)
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14 February 2026 Seller is NRI, buyer is resident, sale value of property is 95 lakhs, how will be the surcharge calculated on the same, when we do not know the total capital gain/ total taxable income of the seller.
How much will be the total TDS to be deducted?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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14 February 2026 For an NRI seller and resident buyer in India, TDS under Section 195 is deducted by the buyer on payments to the NRI for immovable property sales. Without the seller's total income or capital gains details (and no lower/nil TDS certificate under Section 197), TDS applies at the applicable rate (20%/12.5% LTCG or 30% STCG) plus surcharge and 4% cess on the entire sale consideration of ₹95 lakhs, not just gains.

TDS base is on full sale value (₹95 lakhs) if no Form 13 certificate from the Assessing Officer specifying lower rate based on actual gains. Holding period determines base: LTCG if >24 months (typically 12.5% post-July 2024 budget), STCG otherwise (30%)

Suresh S. Tejwani

Suresh S. Tejwani (Querist)
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14 February 2026 Surcharge rate Applicability if Sale Consideration is RS.95 lakhs ?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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15 February 2026 Yes, surcharge is applicable over the sum.

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