TDS amount query on Flat dealing with NRI

Hi Sir,

I am buying a flat from a NRI for 35 Lakhs and will be deducting 20.6% TDS on total amount but the NRI wants me to the TDS on 20.5 Lakhs and have provided the below calculation and his explanation.

My query here is can I go ahead with the deal and should deducted the TDS on only 20.5 Lakhs as per below calculation or else the TDS needs to be deducted on 35 Lakhs only.

Please find the calculation.

Cost of Flat - 464317 in FY 1999-2000

Stamp duty - 18910 in FY 1999-2000

Cost of interiors - 214660+7339+7115+6215 = 235329 in FY 2000-2001

The cost inflation index is changed in the current FY by shifting the base year from 1981 to 2001, hence we have to consider the fair market value as on 01.04.2001 which is not available.

Considering the CCI of earlier the Capital Gain will be 20,49,588 till FY 2016-17.

So our net tax liability will be only on this CG amount but this will also be reduced if we take the fair market values as on 01.4.2001.

As we are selling in FY 2017-18, we should consider the revised fair market value but as the base is changed, we have considered till 31.03.2017.

you have to deduct TDS on consideration amount that you will pay to NRI and not on the computed capital gain. If the seller who is NRI wants to get TDS on a value lower than consideration amount than he has to apply for lower TDS certificate to AO then only you can deduct TDS on lower amount


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