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NRI - i.m going to buy a land from Indian
8 months ago
hi sir, i.m going to buy a land from indian who stayed in abroad more than 1 year, but the owner is stayed there was non income category (i.e parent visa)... if i must deduct tds 20% or not?
A.Dear Client,
When you buy property from an NRI in India, you may be required to deduct TDS on the sale transaction. The TDS rate applicable to property transactions involving NRIs can vary depending on the nature of the property and the sale amount. Here are some key points to consider:
TDS Applicability: TDS is generally applicable when the sale value of the property is above a certain threshold. As of my last knowledge update in September 2021, the threshold was set at Rs. 50 lakhs. If the property's sale value exceeds this threshold, TDS is typically applicable.
TDS Rate: The TDS rate can vary based on the nature of the property transaction:
For the sale of immovable property (like land or buildings), the TDS rate is typically 1% of the sale value.
If the seller is an NRI, the TDS rate may be higher, often around 20%.
TAN (Tax Deduction and Collection Account Number): You may need to obtain a TAN if you are required to deduct TDS. TAN is a 10-digit alphanumeric number used to track TDS payments.
Form 26QB: You'll need to fill out Form 26QB and make the TDS payment online through the NSDL website.
PAN of Buyer and Seller: Ensure that both the buyer and seller have valid PAN (Permanent Account Number) cards. PAN is required for the TDS process.
Obtain a Tax Residency Certificate (TRC): The seller, being an NRI, should obtain a TRC from the tax authorities of their country of residence. This may help in determining the applicable tax rate as per the Double Taxation Avoidance Agreement (DTAA) between India and that country.
Thank you.
When you buy property from an NRI in India, you may be required to deduct TDS on the sale transaction. The TDS rate applicable to property transactions involving NRIs can vary depending on the nature of the property and the sale amount. Here are some key points to consider:
TDS Applicability: TDS is generally applicable when the sale value of the property is above a certain threshold. As of my last knowledge update in September 2021, the threshold was set at Rs. 50 lakhs. If the property's sale value exceeds this threshold, TDS is typically applicable.
TDS Rate: The TDS rate can vary based on the nature of the property transaction:
For the sale of immovable property (like land or buildings), the TDS rate is typically 1% of the sale value.
If the seller is an NRI, the TDS rate may be higher, often around 20%.
TAN (Tax Deduction and Collection Account Number): You may need to obtain a TAN if you are required to deduct TDS. TAN is a 10-digit alphanumeric number used to track TDS payments.
Form 26QB: You'll need to fill out Form 26QB and make the TDS payment online through the NSDL website.
PAN of Buyer and Seller: Ensure that both the buyer and seller have valid PAN (Permanent Account Number) cards. PAN is required for the TDS process.
Obtain a Tax Residency Certificate (TRC): The seller, being an NRI, should obtain a TRC from the tax authorities of their country of residence. This may help in determining the applicable tax rate as per the Double Taxation Avoidance Agreement (DTAA) between India and that country.
Thank you.
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A.Dear Sir,
The question involves tax and financial matter. You may approach any chartered accountant or auditor for effective advise.
The question involves tax and financial matter. You may approach any chartered accountant or auditor for effective advise.
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