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TDS on sale of immovable property by NRI

Rituja Swarup Nair (Student) (32 Points)

19 October 2020

An NRI sells a flat in Mumbai to Resident in F.Y.20-21 for Rs90lacs. Is the NRI eligible to get the benefit of tds rate deduction of 25% as per press release of 13th May 2020

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6 Replies

ayusmita (Tax consultant) (5885 Points)
Replied 20 October 2020

Long term tds -:
1.if a property values is less than 50 lakh then 20.8% including cess n surcharge
2. if a property values is between 50 lkh to 1 cr then 22.88%including cess n surcharge
3. if a property values more than 1 cr then 23.92% including cess n surcharge
now the finance minister announcement of
4. if the property values above 2 cr then 25%
5. if the property values more than 2cr to 5cr then 37%

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Rituja Swarup Nair (Student) (32 Points)
Replied 20 October 2020

But do we get waiver of tds rate to the extent of 25% for NRIs?

ayusmita (Tax consultant) (5885 Points)
Replied 20 October 2020

Why you saying for waiver of tds
I don't think there's is any announcement yet for this
the announcement that is made for TDs and tcs for 25%cut off for non salary payment means payment for contract, proffestional fees, interest,rent, dividend , commission, brokerage.

Rituja Swarup Nair (Student) (32 Points)
Replied 20 October 2020

Ok..thank you

ayusmita (Tax consultant) (5885 Points)
Replied 20 October 2020

Welcome

Neha sharma (-) (1257 Points)
Replied 17 April 2021

The 25% reduction in TDS was only on payments made to Residents. TDS on Payment to Non-Resident is made under Section 195 and as per the notification the 25% reduction in TDS is not applicable to Section 195

Therefore, same rate of TDS will apply to Non-Resident and the same rate of TDS will apply as earlier.

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