Tds on property purchase from nri

r d medane (proprietor) (85 Points)

17 August 2016  
Mr. A wants to buy property from Mr. B who is NRI staying in Dubai. Consideration for the flat is Rs. 2.00 crore TDS is to be deducted on payment of purchase price is 20% for NRI while for other it is 1%. NRI sellers cost of acquisition is 1.40 crore PLUS inflation index is 60 lacs. Sale price is Rs. 2.00 crore. There is no capital gain. Even 1% deducted i.e Rs. 2 Lacs will have to be claimed as refund. What is the Remedy for the buyer & seller.