TDS on purchase of NRI property by Indian resident

TDS 353 views 3 replies

shikhar

associate

24 Points Joined December 2019

I m willing to purchase property from NRI in India, as per information available i will deducte 20.8% on sale value an credit TDS under sec 195 , pls advise on how to file 27Q and generate 16A to be given to NRI

Replies (3)

Sri Hari Kannan

Practicing Chartered Accountant

36 Points Joined December 2019

Form 27Q must be filed through NSDL website. Once you prepare and generate the TDS file, log on to Income tax efiling portal and upload the TDS file and validate the same. Once this is done, Form 16A can be generated and provided to the deductee (NRI)

Refer: https://www.incometaxindiaefiling.gov.in/help/?lang=eng# for more clarity

Kapadia Pravin

17264 Points Joined December 2018

You have to go to TRACES website. You will find complete process there. You can pay TDS as well as File 27Q simultaneously. Can also download Form 16A after 7-10 days.

Will need PAN No of NRI Indian.

CA Arun Tiwari

Partner

6665 Points Joined February 2018

There are two Tax Implications from the point of view of Taxation that is:-

From the point of view of Seller (NRI):-

NRI will be levied Capital Gain Tax ( either it may be a Long term or short term ) as the case may be.

Long term capital gains are taxed at 20% and short term gains shall be taxed at the applicable income tax slab rates for the NRI based on the total income which is taxable in India for the NRI.

From the point of view of Buyer (Indian Resident):-

When an NRI sells property, the buyer is liable to deduct TDS @ 20%. In case the property has been sold before 2 years(reduced from the date of purchase) a TDS of 30% shall be applicable

So these two Tax implications must be considered from the tax point of view.