TDS on sale of immovable property by NRI

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Student
32 Points Posted on 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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On 19 October 2020 at 22:38 Report
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Quick Summary
This discussion clarifies the Tax Deducted at Source (TDS) applicable when a Non-Resident Indian (NRI) sells immovable property in India. It addresses whether the 25% TDS rate reduction announced in May 2020 applies to NRIs. The consensus is that this reduction was specifically for payments made to residents and does not extend to TDS on payments to non-residents under Section 195. Therefore, the standard TDS rates for NRI property sales remain in effect.

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Tax consultant
5895 Points Posted on 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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On 20 October 2020 at 01:11
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Student
32 Points Posted on 20 October 2020
But do we get waiver of tds rate to the extent of 25% for NRIs?
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On 20 October 2020 at 09:17
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Tax consultant
5895 Points Posted on 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.
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On 20 October 2020 at 09:47
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Student
32 Points Posted on 20 October 2020
Ok..thank you
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On 20 October 2020 at 10:49
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Tax consultant
5895 Points Posted on 20 October 2020
Welcome
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On 20 October 2020 at 11:25
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1257 Points Posted on 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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On 17 April 2021 at 18:39

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