TDS on Advance Paid Against Property to NRI

Jeetu Kodwani (Consultant) (412 Points)

15 May 2022  

Dear Experts.

MR.A (NRI) entered into transaction to sell his property to Mr.B (Resident Indian) for 55 Lacs.

Mr B has paid token amount Rs 5 Lacs to A.

MR A has Got certificate for lower deductions of TDS wherein the TDS Rate and amount 50 Lacs mentioned.

Now my question is what about the TDS on adavnce of 5 Lacs which is already paid to Mr.A By Mr.B

Weather he don't need to deduct any TDS??

Or

Weather the TDS is applicable as ler Rate mentioned in Lower Deductions Certificate??

Or

Weather Normal TDS rate of 20% is applicable on advance amount.??

Or is there any other solutions?

Kindly help with ur expert opinion.