TDS on Sale to NRI

Acquisition/ transfer by a Non- Resident Indian (NRI)

1 Purchase of immovable property

An NRI can acquire by way of purchase any immovable property (other than agricultural land/ plantation property/ farm house) in India.

2 Transfer of immovable property

1. An NRI may transfer any immovable property in India to a person resident in India;

2. An NRI may transfer any immovable property (other than agricultural land or plantation property or farm house) to an NRI or a PIO resident outside India.

3 Payment for Acquisition of Immovable Property

1. NRIs can make payment for acquisition of immovable property (other than agricultural land/ plantation property/ farm house) out of funds received in India through normal banking channels by way of inward remittance from any place outside India or by debit to his NRE/ FCNR (B)/ NRO account;

2. Such payments cannot be made either by traveller’s cheque or by foreign currency notes or by other mode except those specifically mentioned above.

TDS payable on property purchases by NRI in India, under Section 194-IA.

The tax required to be deducted if seller provides their PAN number is 1% on the purchase price when the price exceeds 50 lakh Rupees.

If seller does not provide PAN info, then 20% TDS needs to be deducted.