LIVE GST Audit Course by CA Sachin Jain. Register Now!!

TDS on Property in Case of NRI

Yogesh Kini (Tax Consultant) (39 Points)

13 January 2020

Hello Members,

My Client (Sellers) are NRI's wants to sell Two Flats and further reinvest that Money while Purchase of One Flat. All Money will be Invested in Single Flat. In These Case, Both - Sellers and Purchasers are NRI. There are some Queries in point of Taxation:

1. What will be the Rate of TDS on Deduction on Sale Consideration? .

2. Who will Deduct TDS, as both - Sellers and Purchasers are NRI?

Kindly Guide me for the same.

Thanking You,

Reply
Follow
Share

3 Replies

CA Arun Tiwari (Partner) (4630 Points)
Replied 14 January 2020

If the property is situated in India then capital Gain is required to be paid .however, if he wants to reinvest that capital gain amount ten sec 54 series of the Income tax provides Exemption from capital gain tax. If the property is not situated into India then no need of TDS deduction .

So first clarify where the property is situated .

1 Like

Yogesh Kini (Tax Consultant) (39 Points)
Replied 14 January 2020

Thanks for your reply. Property is situated in India. But my query is not about the exemption under capital gains. My query is : What will be TDS on property where both buyer and seller are NRI and Who will deduct TDS.