An NRI has sold his property in india. How is TDS can be charged on this payment? At what percentage and on what amount?
What is the process to file document to AO if any? Is there any form Payee or Payer has to file with the AO regarding this?
Can any body please tell me the full process?
As per the Indian Income Tax Act, when a resident purchases any property from a non resident, he has to deduct income tax (TDS) and pay the balance amount to the seller.
As per section 195 of IT act, he has to deduct 20% of the sale consideration as tax before making the net payment to seller.
Buyer should first obtain TAN under section 203A of the Income Tax Act, 1961 before deducting TDS. TAN can be obtained by applying buy filling up the Form 49B.
TDS must be deducted at the time of making the payment to the NRI. The information about the TDS being deducted and the rate at which it was deducted should be mentioned in the sale deed between the NRI seller and the buyer.
Details refer: tds-property-purchase-nri
Thank You for your answer Sir.
I there any specific form or format for obtaining certificate from Income Tax Officer by the seller of property(NRI)??
In normal case no certificate is required. But if seller wishes for lower or nil deduction of tax then an application u/s. 197 of I T act, can be made by filling form 13.
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