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tds deduction requirements while purchasing property from NRI

11 January 2019

my client want to buy a property from NRI. the NRI is asking us not to deduct TDS as he is selling the property for loss.can I make full payment without deduct TDS?

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2 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (195608 Points)
Replied 11 January 2019

No.

Ask him to get 'NIL TDS Deduction' certificate from his Jurisdictional ITO.

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Nitesh bind (Student CA Final ) (12692 Points)
Replied 11 January 2019

No. You have to deduct TDS unless the NRI submit you the Nil TDS Certificate.

When purchasing a property from NRI – TDS is required to be deducted on Capital Gains and not on the Sale Price. In case of purchase of property from NRI, TDS under Section 195 is required to be deducted on the Capital Gains at the following rates:

For LTCG - 20%

For STCG - Income tax slab rates of Seller.

6 Like