TDS on Advance Paid Against Property to NRI

This discussion addresses the complexities of Tax Deducted at Source (TDS) when an advance payment is made for a property sale to a Non-Resident Indian (NRI). The core question revolves around whether TDS applies to the initial advance amount, and at what rate, especially when a lower deduction certificate exists for the full property value. Experts clarify that Section 194-IA (for property sales to residents) is not applicable here, and the transaction falls under Section 195, which governs payments to NRIs. The consensus is that TDS is applicable on the advance, likely at the standard 20% rate unless a specific lower TDS certificate for the advance can be obtained from the NRI seller, which is considered practically difficult.