Surcharge on TDS on sale of property by NRI

TDS Deduction on Sale of Property The buyer needs to deduct TDS at 1% of the sale consideration, which is Rs 3.10 crore in your brother's case. The TDS amount would be Rs 31 lakhs. Surcharge Applicability For Non-Resident Indians (NRIs), the tax rate on long-term capital gains (LTCG) from the sale of property is 20% with indexation benefits or 12.5% without indexation benefits. A surcharge is applicable on the tax amount. Surcharge Rates The surcharge rates for NRIs are as follows¹: - *Up to Rs 50 lakhs*: No surcharge - *Rs 50 lakhs to Rs 1 crore*: 10% surcharge - *Rs 1 crore to Rs 2 crores*: 15% surcharge - *Rs 2 crores to Rs 5 crores*: 25% surcharge - *Above Rs 5 crores*: 37% surcharge Applicable Surcharge Given the sale consideration of Rs 3.10 crore, if we consider the tax implications under section 112, the maximum surcharge applicable would indeed be *15%* if the income falls between Rs 1 crore to Rs 2 crores. Calculation If the tax liability is calculated under section 112 with a tax rate of 12.5%, the surcharge would be 15% of the tax amount. However, the buyer should consult a tax professional to ensure accurate calculation and compliance with tax laws. Recommendations - Consult a tax professional to determine the exact tax liability and applicable surcharge. - Ensure compliance with TDS provisions under Section 194IA of the Income Tax Act, 1961. - Verify the calculation of TDS and surcharge to avoid any potential disputes or penalties.²