TDS on NRI: Purchase of Property from NRI

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  1. R.Raja

    R.Raja New Member

    When I buy a property( residential house ) from a NRI am I bound to deduct any tax amount and to pay to Income Tax Dept after calculating the capital gain which the seller gains. If so what is the percentage at which tax to be paid ?
  2. rudrabose

    rudrabose Active Member

    In case of purchase of property from NRI, TDS would be required to be deducted from the income arising to the NRI.

    Assuming that this is a long term capital gain arising to the NRI, Long Term Capital Gains Tax @ 20% would be applicable.

    Therefore, the buyer would be required to deduct TDS @ 20% of the Capital Gains arising to the NRI and not 20% of the Sale Price.
  3. rudrabose

    rudrabose Active Member

    However, in case the NRI intends to reinvest these Capital Gains in India and claim Exemption, No TDS would be required to be deducted in this case.

    So, you would first be required to check if there is any Capital Gains arising to the NRI and the tax that would be payable on such gain by the NRI. The tax payable by NRI would be required to be deducted as TDS
  4. rudrabose

    rudrabose Active Member

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