TDS deduction on property sale by non-resident and forms to be filed

A residential property purchased in 1998-99 is being sold in 2026-27. The FMV in 2001-02 was 4,00,000 and both the guideline and sale values are 16,00,000. Three sellers are residents and one is a non-resident and all get equal share i.e. 4,00,000 each.

Could you kindly clarify:
1. There is no TDS for residents.
2. The TDS rate for non-resident is 12.5%. Is 4% cess to be added to this?
3. The TDS for non-resident will only be on his share i.e. 4,00,000.
4. Should Form 144 or Form 145 be filed? If Form 145, only Part A should be filled and Form 146 is not required as the share is less than five lakhs.

Thank you.

Replies (1)

No TDS applies to the residents as the property value is under ₹50 Lakhs. For the non-resident, TDS applies at 12.5% plus a 4% cess on his ₹4,00,000 share, requiring the buyer to use a TAN and file Form 27Q.

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