Q1117. TDS on NRI Property Sold in India - How to avoid the higher TDS applicable on the
Question: Hi, What is the TDS for sale of the property above 50L, online un cleartax site, it says 20% for NRI sellers, is there a way it could be claimed? Is 20% calculated on Sale price or gains? The property itself costed around 75L, and if I sell for 90L. So paying 20% on 90L really seems like double tax on 75L , which has come out of savings after taxes. Thanks
Answer: TDS on the sale of property is calculated on the full sale price of the property. Overpayments of tax due is refunded when a tax return is filed. Depending on the income in India of the NRI seller they may be able to get a waiver of TDS so the higher TDS deduction applicable to NRIs is not deducted by the buyer. For more details see my article ‘TDS Rules in India when NRI sell their property in India’. The link to the article is provided:
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