My brother, an NRI, is in process of selling a residential property in India at a negotiated amount of Rs. 3.10 crore. I understand that TDS has to be deducted at the rate of 12.5% of sale price as per new tax regime w.e.f. 23.07.2024 with surcharge and cess thereupon. The buyer is insisting to deduct 25% surcharge. I am of the view that since tax is leviable under section 112, maximum surcharge applicable should be 15%. What would be the correct position? Thanks in advance.
CAclubindia
