Tds rate under dtaa between uae & india on nri property sale

DEEPAK P G (Querist) 10 May 2020 This query is : Resolved
DEAR SIRS,

AN NRI WANTS TO SELL HIS PROPERTY IN INDIA WHICH HAS BEEN HELD BY HIM
FOR MORE THAN FIVE YEARS. IN NORMAL CIRCUMSTANCES, THE RATE OF TDS WOULD
BE 20% UNDER SECTION 195 OF THE I. TAX ACT. HOWEVER, THE NRI WANTS TO KNOW WHETHER A MORE BENEFICIAL TDS RATE IS AVAILABLE UNDER DTAA BETWEEN UAE AND INDIA..

REGARDS,
DEEPAK P G

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Quick Summary

An NRI is enquiring about the TDS rate applicable when selling Indian property held for over five years, specifically if the India-UAE Double Taxation Avoidance Agreement (DTAA) offers a more favourable rate than the standard 20% under Section 195. The consensus is that no more beneficial rate is available under the DTAA in this scenario. However, if the NRI anticipates their actual tax liability to be lower, they can apply to the Income Tax Officer (ITO) for permission to deduct a reduced TDS amount.

Raj Kumar Makkad (Expert) 11 May 2020
No. There is no beneficial scheme than you yourself posted. This is the minimum rate of TDS for NRI in the given facts.

Rajendra K Goyal (Expert) 11 May 2020
No beneficial rate is available.

If the NRI feels that the actual Tax would be less he can approach concerned ITO for permission regarding deducting less TDS.