Tds on purchase of property from nri

Dear Rupal,

Incase of an NRI, the deduction of TDS is to be made under section 195 and not 194IA of the income tax act, 1961.

yes.... at the most, the NRI can apply to the ITO for a certificate for non deduction of tax on the payments made

You need to obtain a TAN. 

Deduct and then remit to the government. Rate of tax will be 20% + Surcharge (if applicable) + Cess

The NRI can approach the department to get a certificate for lesser deduction. 

In case he gets a certificate, based on the same you can deduct. 

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Originally posted by : Ankit
	Dear Rupal,   Incase of an NRI, the deduction of TDS is to be made under section 195 and not 194IA of the income tax act, 1961.   Selling of immovable property by a Non Resident Indian is taxable under the income tax under Chapter XIIA of the Income Tax Act, more specifically under section 115E of the Income Tax Act 1961. The rate of tax prescribed and in force is twenty per cent.

Dear Ankit

Who will deduct TDS @ 20% as mentioned by you, buyer (from the payment made to seller) or seller itself (in this case NRI).

Is this TDS @ 20% same as Capital gains or Capital Gains will be deducted additionally.