NRI Selling property in India

When purchasing property from a Non-Resident Indian (NRI) in India, buyers are liable to deduct Tax Deducted at Source (TDS) under Section 195 of the Income Tax Act, not Section 194 IA. The NRI seller must obtain an Indian PAN card to file their Income Tax Return (ITR) for capital gains assessment. If the seller does not have a PAN, applying for one is necessary, and they should also open an Indian bank account. Tax officers determine the deduction rate, with surcharge and cess applied additionally. Tax is indeed payable on property located in India when capital assets are transferred.