Tds on nri while selling property flat in india

Dear Qurist,

If an NRI sells real estate in India, the buyer must withhold TDS at a rate of 20% in cases where long-term capital gains are involved. However, TDS must be deducted at a rate of 30% as a short-term capital gains tax if the property is sold before two years have passed.

Section 195 of the Income Tax Act of 1961 says that:

The deduction of income tax from payments made to non-residents is required.

An undertaking (in form 15CA) and a Chartered Accountants Certificate (in form 15CB) must be provided by the individual sending the money to a non-resident.

In response to your query about reduction of TDS I would advise you to submit Form 13.

This is an application to the Income Tax Department for the issuing of a Certificate for Nil/Lower Deduction of TDS in order to lower the TDS on the sale of property.

The vast majority of NRIs chose this particular certificate as it significantly lowers their TDS Liability.

Majority of NRIs hire a Chartered Accountant to file this application as it is a difficult undertaking, and so you can avail services to make it easier for you.