TDS on Purchase a property from NRI

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This query is : Resolved

Ashish Kumar Pandey (Querist)
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17 December 2024 Dear Sir,
Please advice the above transaction-Surcharge Rate
case Summary: -
Mr. X (Individual) Purchased a property in India date 30.04.2024 from NRI of Rs. 12 Crores.
NRI profit- Long term capital gain on Property Sale of Rs. 8 Crores Approx.
Then NRI submit the request to AO for LDC as per his Tax calculation, he takes benefit of cost indexation of the property sale in the tax calculation.
AO verified the Tax calculation and LDC issued to NRI for his Long-term capital gain (Property sales) as per below mention Tax rate.
20% TDS +Plus Surcharge extra
So, Mr. X Individual need to deduct TDS u/s 195 under the head Long term capital gain (Property Sale) as per LDC received
TDS 20% +15% Surcharge and Form 26QB filed properly.
Traces raised demand related to Surcharge rate short 25% demand but deduct 15% by us.
So, What is the Correct Surcharge rate applicable on the above transaction.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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17 December 2024 The rates of Surcharge under the tax regimes are as under:

Total Income Old Tax Regime New Tax Regime
Rate of Surcharge Applicable
Up to Rs. 50 Lakh Nil Nil
Above Rs. 50 Lakh and up to Rs. 1 Crore 10% 10%
Above Rs. 1 Crore and up to Rs. 2 Crore 15% 15%
Above Rs. 2 Crore and up to Rs. 5 Crore 25% 25%
Above Rs. 5 Crore 37% 25%

If the LTCG is exceeding 2 Crs. then surcharge would be 25%, but up to 2Crs. it is 15%.

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