TDS on Property in case of NRI

Yogesh Kini (Tax Consultant) (86 Points)

10 March 2020  

Hello Members,

My Client has executed Release Deed (50% Share) in March 2020 between Two Daughter(25% Each) and herself to become owner of Flat 50%. Now, as she is owner of flat (50%) and rest (50%) is with brother in law. They further want to execute Sale Agreement. As a result of sale deed (Not yet Executed) She will sell the 50% share to Brother in law. In mutual Understanding he will pay Rs.85 Lakhs which will be adjusted to repaid towards outstanding housing loan of Rs.2 Crores Aprrox. for different Flat. Market Value is Rs.84 Lakhs.

Both, Lady (Seller) & Brother in law (Buyer) are NRI. In this case, I have some query,

1. What will the TDS Rate applicable to be deducted on Consideration?

2. Who will deduct TDS, Buyer or seller as both are NRI.

3. Can we approach for Lower Deduction certificate to Income Tax Office.

4. Exemptions that can be Availed in short term Capital Gains.

Suggestions are highly appreciated. Please Guide.