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TDS RATE ON PROPERTY OWNED BY NRI IN INDIA

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Venu Gopal

Accts Assistant

78 Points Posted on 22 April 2022

Normally tds have to be deducted @ 10%

but if the property is owned by NRI..them what is the rate of tds???

it is 31.2% including cess

but the owner's CA is asking me to deduct @ 10 percent only...saying that owner hav been filing it returns for last 2 years...

is it right to do so???

kindly reply at the earliest

Replies (2)

Quick Summary

This discussion explores the correct TDS (Tax Deducted at Source) rate for property transactions involving Non-Resident Indians (NRIs) in India. While the standard rate is 10%, the applicable rate for NRIs can be higher, often around 31.2% including cess. The thread questions whether a lower rate of 10% is permissible if the NRI owner has been filing tax returns in India for the past two years, or if the property was constructed using funds from an Indian savings account or inherited.

sabyasachi mukherjee

Profession

19978 Points Posted on 24 April 2022

How he has constructed the house property from a savings bank account in India but income earned in India?
If it is out money transferred from foreign funds then it is a different question.