Wether to furnish Form 16A or Form16B for purchase of NRI property?

Hi,

 

I paid TDS via challan ITNS 281 for property purchased from a NRI. I read this article https://www.charteredclub.com/tds-property-purchase-nri/ which states that Form16A needs to be given to seller. But isn't it Form16B which is the relevant TDS ceritificate for sale of property? Please clarify..

 

Thanks

Replies (3)
Quick Summary
This discussion clarifies whether to use Form 16A or Form 16B when deducting Tax Deducted at Source (TDS) for a property purchased from a Non-Resident Indian (NRI). The consensus is that for property purchases from NRIs, TDS under Section 195 is applicable, and Form 16A is the correct TDS certificate to be provided to the seller. Form 16B is relevant for property purchases from resident sellers under Section 194IA.

The property in question is a urban agricultural land.

While purchasing any property from NRI, you need to deduct TDS u/s. 195 of IT act. (rate varies from 20 to 33%)

The same should be deposited to treasury after obtaining TAN no.

Once tax is paid under TAN, you can download form 16A..

Purchase property from NRI, Than TDS @ 195 applicable and relevant form is Form 16A,

where as in case of Resident Sec 194IA is applicable and relevant form is Form 16B

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