TDS on Purchase of Property from NRI Seller
This query is : Resolved
Suresh S. Tejwani
(Querist)
13 August 2026
I am the buyer of an immovable property in India, and the seller is an NRI.
Please clarify under the new Income-tax Act, 2025:
Which section is applicable for TDS deduction?
What is the applicable TDS rate, including surcharge and cess, if any?
What is the relevant TDS code/section code for depositing TDS?
Is TDS applicable on the entire sale consideration or capital gain?
What are the applicable forms and compliance requirements for the buyer?
Please provide the applicable provisions for FY 2026-27.
Please clarify under the new Income-tax Act, 2025:
Which section is applicable for TDS deduction?
What is the applicable TDS rate, including surcharge and cess, if any?
What is the relevant TDS code/section code for depositing TDS?
Is TDS applicable on the entire sale consideration or capital gain?
What are the applicable forms and compliance requirements for the buyer?
Please provide the applicable provisions for FY 2026-27.
13 August 2026
Section: 195 (Buyer requires a TAN).
TDS Rate: 12.5% for LTCG or 30% for STCG, plus applicable Surcharge and 4% Cess.
Base Amount: Deduct on the entire sale price unless the seller presents a Section 197 Lower Deduction Certificate.
Key Compliances: Deposit via Challan ITNS 281, file quarterly Form 27Q, and issue Form 16A.
TDS Rate: 12.5% for LTCG or 30% for STCG, plus applicable Surcharge and 4% Cess.
Base Amount: Deduct on the entire sale price unless the seller presents a Section 197 Lower Deduction Certificate.
Key Compliances: Deposit via Challan ITNS 281, file quarterly Form 27Q, and issue Form 16A.
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