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How to remit TDS deducted on purchase of property from NRI

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Lekshmi Narayanan

43 Points Posted on 17 November 2023

I understand I need to deduct TDS @ 20% (plus surcharge and cess) when I buy property from an NRI. Assuming the sale consideration is say 100 lakhs, I pay the seller 80 lakhs, retaining 20 lakhs. My question is how do I remit this amount to income tax? I plan to do this online, if I go to e-pay tax from income tax website, it says select 26QB (which I know is for residents, not NRI), once I select this, it asks for residential status of seller. Once I mention NRI, it states use Form 27Q. If I understand correctly, 27Q is for filing the return after remitting the tax as it asks for the challan number. So how do I pay this tax? What challan do I use?

Kindly help

Subramania

Replies (3)

Quick Summary

When purchasing property from an NRI, you must deduct TDS at 20% (plus surcharge and cess). While Form 26QB is for residents, NRIs require Form 27Q. The process involves remitting the deducted tax, typically within 15 days of deduction, using the correct challan. This guide clarifies the payment procedure and form requirements for remitting TDS on NRI property transactions.