Tds on nri property

Hari Konanur (Querist) 15 November 2021 This query is : Open
Namaste sir

I'm planning to purchase flat worth Rs45 lakhs in Bangalore from NRI seller

He is telling me that he purchased flat for Rs 25 lakhs around 13 years ago.

He quotes that he developed flat by investing on interiors.

So how much can i deduct TDS from 45 lakhs.
This deducted tds amount i need to pay to income tax department

Regards
Hari

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Quick Summary

When purchasing property from an NRI seller in India, TDS (Tax Deducted at Source) rules apply. The buyer is generally responsible for deducting TDS from the sale consideration and paying it to the income tax department. The rate and applicability of TDS can depend on the sale value and the seller's capital gains. It's advisable to consult a local tax professional for specific guidance.

Dr J C Vashista (Expert) 16 November 2021
Consult a local chartered accountant / tax consultant.

SHIRISH PAWAR, 7738990900 (Expert) 16 November 2021
Hello,

No need to deduct tds in your property purchase transaction.

kavksatyanarayana (Expert) 16 November 2021
I opine the buyer has to deduct 20% of the sale consideration as tax before making payment to the seller. NRI's who are selling their properties which are situated in India have to pay tax on the Capital Gains.

Hari Konanur (Querist) 16 November 2021
Thank you respected sirs

K Rajasekharan (Expert) 16 November 2021
Buyer need not deduct TDS from the sale consideration when the sale amount is below 50 lakh rupees.

In case the sale consideration is above 50 lakh the buyer has to deduct one percent of the amount as TDS, pay it to the department and deduct that amount from the amount to be paid to the buyer.

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