TDS Applicability for an NRI

When purchasing property from a Non-Resident Indian (NRI), the buyer must deduct Tax Deducted at Source (TDS). The applicable TDS rate depends on whether the property sale results in a long-term capital gain (held over 2 years, 20% TDS) or a short-term capital gain (held under 2 years, 30% TDS). Buyers should verify the holding period of the property before deducting TDS to ensure compliance and avoid penalties for short deduction.