Sale of Property by NRI in India

Hi,

If you are an NRI as per income tax, then the TDS would be deducted @20% on sales consideration in case of long term gain. It can't be 1%.

However, you can make an application before the assessing officer for lower tax deduction certificate.

Dear Sir,

No TDS would be applicable @20%/30% depending on the nature of capital gain. To save tax, all you need is to obtain lower TDS certificate from the jurisdictional AO.

Thanks

Hi

Since you are a non resident Indian, section 194IA shall not be applicable to you. Section 195 shall apply and accordingly 20/30% TDS shall be applicable.

Your CA is incorrect. Please consult a good CA.

However, you may obtain a No deduction certificate from your AO if you want to claim LTCG exemption after which no TDS shall be deducted by the buyer.

Hi,

Hope you are doing well !

TDS of 1% u/s 194IA is not applicable if seller is NRI. TDS u/s 194IA is only applicable for resident Indian sellers.

Long term capital gain tax will be 20% plus cess if NRI is selling a property in India after holding it for more than 3 years. In case holding period is less than 3 years then Short Term Capital Gain Tax will be applicable as per income tax slab. In case of short term capital gain, TDS applicable will be 30% plus cess irrespective of tax slab of the NRI

Thanks & Regards,

Payal Chhajed

Hi

The tax shall be deducted on the entire sales consideration and not just the capital gains.

It is effectively 20.8% on the sales consideration for LTCG.

It will be 20% of aggregate payment so it will be 20 lacs.

Hi,

Tax Deducted at Source (TDS) of 20 percent on the long term capital gains.

Hi,

TDS would be 20% of the sales consideration.

In your example, you will have to pay tax of 20 crores.

Hi,

Buyer has to deduct 20% of the sale consideration as tax before making the net payment to seller .

In you case it is 20lacs (i.e. 20% of 1cr).

Thanks & Regards,

Payal Chhajed

Hi,

The tds will be 20% if you are a non resident as per Income Tax law. However you can get a lower tds deduction certificate from your AO whereby the tds deducted will be lower.

Regards,

Nikhil.

The tds will be on the total sales proceeds. So if the sale proceeds is 1 cr, the tds amount will be 20 lakhs.

Hope that clarifies.

Regards,

Nikhil.

If you are having a PAN and are regularly filing taxes in India, the buyer will deduct a TDS of 1% on his Purchase Value (i.e. your Sale Price). You will have to pay Capital Gains Tax @20% (if LTCG) on the Capital gains of Rs.20 Lacs. You can also take the benefit of the TDS deducted by the Buyer @ 1% on the Sale Price of the property and pay the balance Tax. (As in your example, your Tax Liability will be 4lacs(20% of 20Lacs Capital Gains) as reduced by Rs.1lac (TDS deducted by the buyer on Purchase of the property) and Balance of Rs.3Lac is to be paid.)

There are also exemptions under the Income Tax Act through which you can reduce your CG Tax Liability.

TDS is always calculated on sale proceeds. It is not calculated on capital gains.

Hi

It will be on capital gain amount ie 20% of 20 lacs

I think there may be some communication gap with your CA in explaining your case. TDS will be deducted @ 1% u/s 194IA on sale consideration only if you are a resident. TDS will be deducted u/s 195 if you are a Non- Resident. The TDS will be @ 20.6% on the sale consideration. Though, you can apply to the Income Tax Officer and request for lower deduction of tax at source, the process will take time.