TDS

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This discussion clarifies Tax Deducted at Source (TDS) and capital gains tax for non-residents selling property in India. Even if the sale value is under 50 lakhs, 20% TDS plus cess applies to non-residents, regardless of Indian origin or holding an Aadhaar card. While the buyer must deduct TDS, sellers can claim a refund of excess TDS by filing an Income Tax Return (ITR). Capital gains tax will be adjusted against the TDS deducted, with any balance refunded upon ITR filing.

123456

123456 (Querist)
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09 June 2020 Sir, i live in USA but have a property in India at Hyderabad, Lakdikapul. I am selling it this month. i have given GPA to my cousin, she will sign it on my behalf. please let me know if any TDS or capital gain tax is applicable on this. if so how much

purchase date: 22nd Nov, 1999
purchase price : 2,60,400

sellling price : 21,08,000

Thank you very much,

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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09 June 2020 TDS of 20% plus SC and cess applicable on entire sale value. File return and claim refund of excess TDS.

123456

123456 (Querist)
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09 June 2020 sir, but sale value is less then 50 lakhs..even then is TDS applicable.?

123456

123456 (Querist)
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10 June 2020 Sir ..can you plz reply to my above query.. Thanks in advance.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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10 June 2020 50 lacs limit not applicable to nonresdent.
20% TDS applicable for sale of property by nonresdent.

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VISHNU PRASAD GHUWALEWALA

VISHNU PRASAD GHUWALEWALA (Expert)
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10 June 2020 Sir, if you are person of Indian origin than in my opinion 20% TDS plus CESS on LTCG is applicable.

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123456

123456 (Querist)
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10 June 2020 Sir is it necessary for buyer to deduct TDS from sale amount at the time of payment,
can seller claim full refund of TDS later
in my case if i come to India and make the sale , will i still be treated a Non resident and TDS applicable.
because i have aadhar card as Id proof.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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10 June 2020 It's necessary for buyer to deduct TDS from sale amount at the time of payment, seller can claim full refund of TDS later if it's not taxable.
If you come to India for a short visit to sell the property you will be considered as nonresdent.

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123456

123456 (Querist)
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10 June 2020 Thank you so much sir.

123456

123456 (Querist)
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10 June 2020 Sir, one more question..what about Capital gain tax..do I have to pay this also apart from TDS deduction by buyer

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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10 June 2020 Capital gains tax will be adjusted against TDS deducted and balance amount will be refunded on filing ITR.

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