A resident buyer of India purchases a land of value less than Rs 50 lacs from a person staying and doing job in America since 8-10 years but citizen of India.
whether TDS is required to be deducted by the resident buyer and what are the compliances by the buyer?
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purchase of property from NRI
Replies (5)
if the sale consideration does not exceeds 50 lakhs there's no obligation to deduct TDS
but the purchase is from an NRI
U r liable to deduct tds u/s 195. Assuming the gain of the NRI is LTCG the rate would be 20% pluss cess surcharge as applicable. The catch is tds needs to be deducted on the sale amount and not on the gain. The NRI will have to file the return in india to claim the refund if tds if any. The best option is to make an application to the AO for assessing the income chargeable under the act and the amount of tds to be deducted.
ok so I will deduct TDS on sale price only. My liability (buyer) will be liable to deduct TDS @ 20% of sale price ?
20% plus cess and surcharge as applicable
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