Tds rate
Aziz Gangerdiwala
(Querist) 01 June 2014
This query is : Resolved
Hi
I am resident of India and planning to buy property from NRI. I have read through some articles and not sure about TDS%. Property is bought by seller from builder and is held for more than 3 yrs
1. As per latest provision if immovable property is bought exceeding 50 lakhs then TDS of 1% needs to be deducted by buyer
Question - Is this applicable if bought from NRI
2. Since this is Long term capital gain, would TDS of 20% needs to be deducted of SALE price
Question- This rate is too high.
3. If property is jointly held by couple, would 2 TDS certificate needs to be issued by buyer in proportion to sale price.
4. If seller wants to reinvest the proceeds, but as a buyer how much TDS needs to be deducted.
Kumar Doab
(Expert) 01 June 2014
If the property in question is same as cited by you in another thread initiated by you at:
http://www.lawyersclubindia.com/experts/Buying-a-property-from-divorced-couple-475016.asp#.U4tS2UeBmXU
then you should hold till your lawyer advises further on the legalities.
Anirudh
(Expert) 02 June 2014
If the value of the property to be purchased is more than Rs. 50 lakhs TDS at 1% is to be deducted by the buyer. The requirement to deduct TDS has nothing to do with the period of holding of the property (whether for more than 3 years or less than 3 years).
Further, so long as the property is being bought in India, TDS is to be deducted whether the seller is indian, nri etc.
What the seller will be doing with the sale proceeds is none of the concerns of the buyer. TDS is not dependent on that.
T. Kalaiselvan, Advocate 
(Expert) 02 June 2014
Very properly addressed by expert Mr. Anirudh on the subject issue, I agree with him.
