Q.1180  Query regarding TDS on sale of property by NRI

Question:   Hi, I came across nriinformation.com while looking for resources on TDS payment and found it to be quite helpful. Thank you for putting up this site and sharing valuable information. I have a query on TDS on sale of property in India. I booked a flat in Bangalore in 2013 and have not yet taken handover of the flat. I have decided to sell the flat and I understand as an NRI the resale will attract 20% TDS. Given my sale value there is no capital gain and thus TDS should ideally be nil. I have read that I can either issue a NIL TDS certificate or claim for refund by filing my IT returns. Which is the preferable way to go? In case I have to issue a NIL TDS certificate, how can I place the request while still being outside India? Looking forward to the response. Thanks in advance. Regards, Answer:  Preferable way obviously would be to avoid paying tax in the fist place, instead of paying a 20% TDS and then going through the paperwork to file tax in order to get a refund. Refunds in India from tax authorities are also not instantaneous and one has to wait for the refund. This may take some time. Property seller needs to contact the appropriate tax office with documentation to get nil tax certificate. In your absence perhaps an accountant can do this on your behalf.
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Disclaimer: Information provided is for general knowledge only and should not be deemed to be professional advice. For professional advice kindly consult a professional accountant, immigration advisor or the Indian consulate. Rules and regulations do change from time to time. Please note that in case of any variation between what has been stated on this website and the relevant Act, Rules, Regulations, Policy Statements etc. the latter shall prevail. © Copyright 2006 Nriinformation.com
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Disclaimer: Information provided is for general knowledge only and should not be deemed to be professional advice. For professional advice kindly consult a professional accountant, immigration advisor or the Indian consulate. Rules and regulations do change from time to time. Please note that in case of any variation between what has been stated on this website and the relevant Act, Rules, Regulations, Policy Statements etc. the latter shall prevail. © Copyright 2006 Nriinformation.com
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Q.1180  Query regarding TDS on

sale of property by NRI

Question:   Hi, I came across nriinformation.com while looking for resources on TDS payment and found it to be quite helpful. Thank you for putting up this site and sharing valuable information. I have a query on TDS on sale of property in India. I booked a flat in Bangalore in 2013 and have not yet taken handover of the flat. I have decided to sell the flat and I understand as an NRI the resale will attract 20% TDS. Given my sale value there is no capital gain and thus TDS should ideally be nil. I have read that I can either issue a NIL TDS certificate or claim for refund by filing my IT returns. Which is the preferable way to go? In case I have to issue a NIL TDS certificate, how can I place the request while still being outside India? Looking forward to the response. Thanks in advance. Regards, Answer:  Preferable way obviously would be to avoid paying tax in the fist place, instead of paying a 20% TDS and then going through the paperwork to file tax in order to get a refund. Refunds in India from tax authorities are also not instantaneous and one has to wait for the refund. This may take some time. Property seller needs to contact the appropriate tax office with documentation to get nil tax certificate. In your absence perhaps an accountant can do this on your behalf.
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