TDS & Refund for Sale of Property by NRI

Hello Sir/Madam

My brother, who is a NRI, is planning to sell his apartment, which he purchased in 2006. The buyer informed him that the TDS would be deducted at 20% since he couldn't produce the LDC/Form 13.

My question.

  1. Can the entire 20% + cess be claimed back if the capital gain is Nill?
  2. if so, should he wait until the end of FY to submit the refund and how long will the refund process take?

PS: He doesn't have any other income in India.

Pls help clarify the above questions. Thanks a ton.

Replies (2)
Quick Summary
This discussion clarifies Tax Deducted at Source (TDS) for Non-Resident Indians (NRIs) selling property in India. The initial query about a 20% TDS rate was corrected, with experts confirming the rate is typically 12.5% plus applicable surcharge. It also addresses the possibility of claiming a full TDS refund if capital gains are nil, advising on the process and potential timelines for submission and refund.

Hi, the TDS rate will be 12.5 % plus surcharge if any and not 20%. Please feel free if you wanna discuss more and want more clarification on below.

ca.ajaakarshjain16 @ gmail.com

Agree with CA Aakarsh Jain.

TDS rate is 12.5% 

Refund of TDS may be possible based on the numbers 

Regards

CA. Raj Doshi

R C D & Co.

Chartered Accountants

Mumbai

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