How to reclaim TDS DEDUCTED from NRI while scaling property in India

In case the TDS amount exceeds your tax liability, then you’ll get a tax refund after you file your taxes. In case you don’t want to go through the refund process, you can apply for a certificate of Lower deduction of TDS with the Income Tax department’s Jurisdictional Assessing Officer.

The latter will specify the TDS after calculating the capital gains. You will obtain the certificate within thirty working days of applying. After the NRI seller receives this certificate, the buyer can deduct TDS at the decided rates and deposit the same against the PAN of NRI.

I want you to know that you are required to make the application for this certificate before the sales agreement is executed. Any token money or advance received before making the application would contribute to high rates of TDS. The buyer needs to deposit the TDS with the government within seven days from the end of the month in which the TDS has been deducted. (Challan Number – 281). The buyer will have to submit the TDS return in Form 27Q.

I hope now you know about the TDS for NRI property sale.