Q812. TDS deduction when property is sold by NRI

Question: Hi, Greetings of the Day!!! I need your advice on Property Deal. I got to know about yours from nriinformation.com I am buying a property worth 55 L from a Green Card Holder Lady. Lady is a green card holder and currently staying in US. She has granted power of attorney to her brother and he will be doing the legal work. I would like to know how much tds we need to cut in case a) if she has PAN card available. b)if PAN card is not available. c)if we lower the agreement cost below 50 L . I am really in a very tense situation and looking for these answers. Request you to kindly provide your advice. Regards, Shashank Khandelwal.

Answer: While for resident Indian seller TDS of 1% is applicable only if the property value is more than Rupees 50 Lakh. However, in case the seller of the property is non-resident, then TDS is applicable even if value of property is less than Rupees 50 Lakh. When property is sold by a NRI then it is mandatory for buyer to deduct 20.66% TDS on the sale price of the property if capital gain is long term capital gain. In case of short term capital gain, TDS will be 33.99%. Buyer is required to deposit the TDS with the Indian Tax Department. More information on TDS on NRI property Detailed information on applicable TDS deduction when property is sold in India by NRI is available in an article TDS Rules in India when NRI sell their property in India >>