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TDS deduction us 195 on purchase of property from OCI

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Krishna

Assistant

719 Points Posted on 06 January 2023

Sir;
1. Where both buyer & seller are NON Resident; then NR Buyer has to obtain TAN to deduct TDS ?
2. Property Value Rs. 90 lacs; then TDS U/s 195 will be 20% plus surcharge 10% & Cess 4% ?
3. If the property is long term then tds rate is 20% but if it's short term then tds is 20% or normal rates??. As per my view in case of short term also tds rate is 20% however few experts say tds is normal rates. please clarify on this ?
3.OCI card holder is always Non Resident or no. of days stays in India to be check ?
Thanks

Replies (3)

Quick Summary

This discussion clarifies TDS (Tax Deducted at Source) implications when an NRI buyer purchases property from an OCI cardholder in India. It confirms that the NRI buyer needs a TAN to deduct TDS. The TDS rate for Long Term Capital Gains (LTCG) is 20% plus applicable surcharge and cess, while for Short Term Capital Gains (STCG), it's 30% plus surcharge and cess. An OCI cardholder's residency status for tax purposes depends on their days of stay in India, as per Section 6 of the Income Tax Act.