Tds on property sold by nri

J B Goel (Querist) 19 August 2016 This query is : Resolved
A NRI was allotted a flat by Omex faridabad in 2005. Though as per Buyer's agreement the possession was to be given in 3 years, offer for temporary possession for getting furnishing was offered in June 2014; the actual possession has been given now in 2016. Total cost of the flat was rs 32 lakh, which is being sold in Rs 48 Lakh. Pl advise the rate and amount on which TDS will be deducted i.e it will be on RS 16 Lakh or Rs 48 Lakh.Pl advise relevant section of IT Act.

J B goel

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Suhail A.Siddiqui (Expert) 20 August 2016
TDS and Capital gain both are different tax under Income tax acts.Buyer have to deduct TDS @ 1% on the sale proceed i.e. 48 Lakh. In case seller do not possess PAN then it will be 20%, but proceed is less then 50 lakh there is no need to deduct TDS.
Now question arise Capital gain Tax, which will be calculated separately with deduction etc.

J B Goel (Querist) 22 August 2016
I think TDS rate for NRIs is 20.6% irrespective of the sale value. Query, whether it is short term or long term has not been advised, the flat was allotted in 2005 and actual possession was given in 2016.
J B Goel

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