Vineet Goyal (Assistant Manager - Finance & Accounts) 02 February 2012
Sale of property by Non-Resident will be either short term or long term capital gain for Non-resident. According to Section 195, tds will be applicable to any income taxable in India and tds will be applicable on the income part only, not on whole sale consideration. Therefore, if the Non-resident has either short term or long term capital gain, TDS will be applicable on this as per specified rate. Please note if DTAA specifies different rate, then the TDS rate which will be more favourable to Non-resident will be applicable.
But if the PAN no. is not available, TDS rate will be higher of above rate or 20%.