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TOPIC: TDS on sale of property by NRI

TDS on sale of property by NRI 4 years 3 months ago #7

  • Anonymous
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A Non Resident Indian (Holding PAN) has entered into MOU with resident Indian for sale of its property located in India. The MOU states that TDS to be deducted @ 20% from the sale consideration or else the NRI has to obtain TDS exemption certificate from the department. My query is whether TDS needs to be deducted on this transaction since Prov of Sec 194IA doesn't apply to Non Resident and hence only charging section is Sec 195. Sec 195 applies when any sum chargeable under the provisions of the Act is paid to NRI then TDS needs to be deducted. In this transaction, there is no income per se which is being paid to NRI but a sale consideration. Please guide whether my view is correct.

In case TDS is applicable then at what rate and whether we can apply for lower / no deduction certificate.
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