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Tds on property purchaed from nri

TDS / TCS 942 views 3 replies

My query is related to TDS deposit procedure for property purchased from NRI

Can we use form 26QB for this OR we need to use ITNS281 using the TAN number.

So the main question is whether 26QB can be used for TDS deduction under section 195 applicable for NRI property

Replies (3)
you need to use Form 26QB to make payment. TAN is not madatory for such case.

thanks but the main question is whether 26QB can be used for TDS deduction under section 195 applicable for NRI property

Form 26QB cannot be used in this case as Form 26QB can only be used in case payment is being made to Resident Indians.

In the case mentioned above, the payment is being to a Non-Resident and therefore Form 27Q would be required to be filed. First the buyer would be required to deposit TDS and then at the end of the quarter, the buyer would be required to file TDS Return.

This mechanism is only applicable to purchase of property from NRI and on purchase of property by Resident Indians. 

For more, kindly refer: https://www.charteredclub.com/tds-property-purchase-nri/


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