Hello Tax Experts
How is TDS calculated for NRI 's when they intend to sell a property to a resident Indian. I understand that India FM Chidambaram while announcing the Budget 2013-14 introduced TDS of 1% on all immovable property transactions above Rs 50 lakhs under section 194IA. Here the buyer of the property would have to deduct the TDS and deposit the same in Government treasury.
But in case of NRIs is the same 194IA applicable or is it section 195
Under section 195, the requirement is to deduct TDS @ 20.6%. In this case is it the buyer's task to deduct this TDS of 20.6% while making the payment to the seller.
Please clarify on these points.
Let me know what should be TDS rate which the buyer will have to deduct when he purchases the property from NRI
Thanks in advance
Venkatesh
