Tds on property purchased from nri

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1 Points Posted on 17 June 2020
hi ,
i have purchased a property from nri seller. i have deducted 20.8 percent. i am getting a notice for shart tds. income tax is computing as 31.2.
i am not able to understand why it is happening
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On 17 June 2020 at 08:39 Report
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This discussion clarifies the differing TDS rates applicable when purchasing property from an NRI seller. The rate depends on how long the NRI has held the property: 20.8% if held for over two years, and 31.2% if held for less than two years. The notice received indicates the tax department is applying the higher rate, suggesting the property was held for under two years.

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1257 Points Posted on 06 March 2021

TDS @ 20.8 is applicable if property held by the NRI is held for more than 2 years. 

However, if the property has been held by the NRI for less than 2 years, 31.2% would be the rate of TDS which would be applicable.

Therefore, the tax officer is correct in sending this notice as 31.2% TDS is applicable in such a case. 
 

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On 06 March 2021 at 00:34
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124 Points Posted on 07 March 2021
Hi, I have a question in this case. Can the benefit of form 26A be applied in this case if the payee (though NRI) has filed his return u/s 139 and paid the applicable tax
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On 07 March 2021 at 12:04

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