TDS for NRI selling property in India?

Many questions might pop in the mind of NRIs like what is the TDS for NRI selling property in India and about NRI selling property in India TDS. In general, an NRI needs to pay the TDS in the range of 20 % to 30 %. It's possible to get around with lower TDS by getting a lower TDS certificate from the tax department in advance. It's necessary to file a special Form 13 with the IRS. The tax authority would issue a lower TDS certificate after reviewing the documentation and will provide the exact percentage of TDS that the buyer must deduct. In other words, if you're an NRI selling property in India, get this certificate to avoid a greater TDS deduction in the event of a sale. Alternatively, the buyer can use it to avoid any penalties due to incorrect TDS computation. I have answered you queries related to TDS on NRI selling property in India and TDS for NRI selling property.

• If you want to know about the TDS for NRI selling property in India, I will tell you about it here. It's
• Calculating capital gains isn't always a simple process. If the buyer is an NRI, determining the applicable NRI capital gain tax can be particularly challenging.
• resident status and computing TDS may be a problem. To avoid a higher TDS deduction, the seller
• may not disclose their residency status or identify themselves as "Resident Indians." Additionally, the
• NRI may be unsure about their residency status at times. Purchasers commonly exclude TDS from the
• entire purchase price in order to avoid the inconvenience of computing capital gains or making an
• error in the calculation. TDS for NRI selling property falls in the range of 20 % to 30 %.
• I think your queries related to NRI selling property in India TDS and TDS on NRI selling property in
• India are resolved now

Taxation and real estate are two complicated subjects which often confuses even the brilliant minds. Especially when it comes to NRIs, they have to be extra cautious while committing to any transactions. They have to be careful with all the rules and regulations which have been laid down for them specifically. TDS is a concept brought by the Government of India to ensure tax is deducted at the source of income so if an NRI is trying to sell the property in India, the buyer is demanded to deduct TDS before making payment. So at what rate deduction of TDS for NRI selling property in India is carried out? Let us find out.

NRI selling property in India: TDS implication

TDS is deducted based on long term and short term capital gains. If the NRI is getting long term capital gains after holding property for more than 2 years then the TDS is deducted at the rate of 20% + surcharge + cess. But if the NRI is getting short term capital gains after holding the property for less than 2 years then the TDS is deducted at the rate of 30%.

As per section 195 of the act, it is mandatory for buyers to deduct TDS and then make payment to the NRI seller. The TDS deducted must be duly submitted to the authorities and the proof of submission is shared with the seller. 

This should be good enough to give you an idea on TDS for NRI selling property in India.

Read more about How to Calculate Long Term Capital Gain on Property How to calculate Short Term Capital Gain on Property

When NRI sells property in India, they have to pay a certain amount as TDS. Tax Deducted Source or TDS is a means of collecting taxes in India on income, assets, sales etc.  TDS for NRI selling property in India is based on the capital gains. There are two types of capitals gains; long term capital gains and short term, capital gains.

When an NRI sells off property after completing the holding period of 2 years, they have to pay taxes on the basis of long term capital gains, if the holding period is for less than 2 years, then the taxes payable are based on short term capital gains.

The rate of tax is higher on short term capital gains, i.e. 30% TDS is deducted on profitable income, whereas on long term capital gains TDS is deducted at the rate of 20% on profit after sales.

There is a wrong notion among many people who have short term capital gains that the tax is deducted as per their income slab in India, however, for NRIs, TDS on short term capital gains is set at 30% only.