Hello I am planning to buy a property in india from NRI. She is a OCI card holder and has Canadian citizenship. She and her husband got this property since 1988, however husband died in Canada and share certificate was transferred to her name. I made a deal of 1 Cr. (this is the total sale consideration amount). I want to understand what will be TDS% ? And how Am i suppose to deduct? What if seller tells me that she is planning to reinvest the amount in another property should I not deduct? Or it is my duty to deduct entire amount while settling payment and than later she can claim accordingly? Please let me know what all other things I should take care? I have got TDS and PAN number too. Thanks
Since you are paying to NRI,you are suppose to deduct tds@ 33.99% (Sec 195 of income tax )
First apply for TAN from tin-nsdl site then deduct and deposit TDS within stipulated time frame to govt. account.
Then file TDS return and issue TDS certificate to seller.
Its your duty to deduct TDS @ 20% in case you are buying a property from an NRI.
However, in case NRI gives you a lower TDS deduction/ No TDS deduction certificate obtained from assessing officer, you can deduct TDS at the rate mentioned in the certificate.
Please feel free to call/ revert in case you need more clarity
Thanks and regards
Abhishek Dugar
CA CS B.Com
You need to deduct TDS @ 20% since you are buying from a NRI. only if the assessee gives you a lower tds certificate, then you need to compky accordingly.
Regards,
Nikhil.
Hi
Since the seller is NRI, you have to deduct 20% TDS on the sales consideration.
The TDS deduction could be reduced if the seller obtains a NIL/ lower deduction certificate from her Assessing Officer.
You will require TAN for deduction of TDS as seller is NRI.
