TDS on Purchase of Property from an NRI
As I understand it , TDS has to be deducted by the buyer on purchase of any property from an NRI. This is at the rate of 20.6or 22.6%.
Are there any exceptions to this rule? Is there some permission that can be taken to prevent such a large TDS. Especially if the proceeds of the sale will be reinvested in India? more
The best course of option shall be to ask NRI to approach International Taxation ITO to determine total taxes to be deducted. The ITO is authorised to issue NIL certificate after hearing. more
Although payer can also apply for lower deduction of tax, It is in the interest of payer that he insists on deducting tax to avoid penalty. However, the payee can apply u/s 195(3) for lower or nil deduction of tax with the income tax officer. more
Thank you Kamalji! On what grounds should we approach the ITO and are there any precedents that you are aware of? As I understand the liability remains that of the purchaser. more
The tax is to be deducted u/s 195 of the Income Tax Act, 1961. Although various views have been formed on this but best is that the payee can approach the Income Tax Officer for no deduction or lower deduction of tax. more