TDS while buying house from an nri
I am planning to buy a property in bangalore from a NRI seller. Recently I heard about the TDS that needs to be deducted while buying property from NRI. When I discussed about this with my NRI seller he gave me the below response
"According to my CA/lawyer, my tax liability is expected to be much lower because of negative capital gain (actual loss). So he asked not to take TDS, because once TDS is taken and paid to the Income Tax department, then it is almost impossible to get it back and it will be an additional loss. Instead, he will file forms 15CA and 15CB along with my income tax filing as soon as the sale is registered. In any case this is necessary since I need to transfer the money to my US account and for the bank to initiate the transfer I need to submit all these forms and income tax filing. Since this will be done right away, there will be no impact on the buyer, and therefore there is no need to take the TDS."
Is it fine to not deduct TDS? In that case should I need to get any document from the NRI Seller ?