What is the Applicable TDS Rate for the Sale of NRI Property Valued Above 1 Crore?

Looking for details on TDS for NRI property sale above 1 cr? When a Non-Resident Indian (NRI) sells property, Tax Deducted at Source (TDS) is applicable on the sale proceeds.

The rate of TDS for the sale of NRI property valued above 1 crore depends on various factors including the type of property and the NRI's tax status. As per the Income Tax Act, 1961, the applicable TDS rate for the sale of NRI property valued above 1 crore is 20% of the sale consideration.

• The applicable TDS rate may vary depending on whether the property sold is a residential or commercial property. For residential properties, the TDS rate is generally 1% of the sale consideration.

• But when the value exceeds 50 lakhs, the rate increases to 5% for Indian residents. For NRIs, the TDS rate is higher, usually at 20%.

• The tax status of the NRI also impacts the TDS rate. If the NRI is a tax resident in a country with which India has a Double Taxation Avoidance Agreement (DTAA), they may be eligible for a lower TDS rate as per the provisions of the DTAA.

• If the NRI seller does not have a Permanent Account Number (PAN), the TDS rate can be higher, usually at 20%. However, if the NRI provides PAN, the TDS rate is generally lower.

• While TDS is deducted at the time of sale, NRIs are required to file an income tax return in India to claim any excess TDS deducted and seek refunds, if applicable. This ensures that NRIs are taxed only on their actual taxable income.

• It's essential for the buyer to comply with TDS provisions and deposit the TDS amount with the government within the stipulated time frame to avoid any penalties or legal repercussions.

This is all about TDS for NRI property sale above 1 cr.

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