TDS on Sale of Property by NRIs – Compliance Simplified for Hassle-Free Transactions!

At Finzkart Private Limited, we understand that selling property in India involves various legal obligations, including Tax Deducted at Source (TDS) implications for Non-Resident Indians (NRIs). Our team of experts ensures that NRIs comply with TDS regulations, facilitating seamless property transactions and maximizing financial outcomes.

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TDS Rates on Sale of Property by NRIs

The TDS rates applicable to NRIs on the sale of property in India are as follows:

If the sale value exceeds INR 50 lakhs, the TDS rate is 20%.

Understanding TDS on Sale of Property by NRIs

As per Indian tax laws, when an NRI sells property in India, the buyer is obligated to deduct TDS from the sale proceeds at the applicable rates before making the payment to the NRI seller. The TDS amount is then deposited with the Income Tax Department.

Important Points to Note

  • Permanent Account Number (PAN):

    NRIs must obtain a PAN before proceeding with the property sale to ensure proper TDS compliance.

  • TAN of Buyer:

    The buyer of the property must possess a Tax Deduction Account Number (TAN) to deduct TDS.

  • NRI’s Capital Gains Tax:

    While TDS is deducted at the time of property sale, NRIs are required to file their income tax return to compute their actual capital gains tax liability. The TDS amount is adjusted against the final tax payable.

  • NRI’s TDS Certificate:

    NRIs can obtain a TDS certificate (Form 16B) from the buyer as evidence of TDS deduction, which they can use while filing their tax return.

How Finzkart Private Limited Assists NRIs with TDS on Property Sale

  • TDS Computation:

    Our experts calculate the applicable TDS on the property sale as per the prevailing rates, ensuring accurate deductions.

  • TAN Application:

    We assist the buyer in obtaining a TAN for TDS compliance.

  • TDS Deposit:

    We ensure that the TDS amount is deposited with the Income Tax Department within the specified timelines.

  • TDS Certificate:

    We help NRIs obtain the TDS certificate (Form 16B) from the buyer, which serves as evidence of tax deduction.

  • Tax Planning:

    Our team provides tax planning strategies to optimize the NRI seller’s overall tax liability on the property sale.

Partner with Finzkart for TDS Compliance

Navigating TDS regulations on property sale can be complex for NRIs. At Finzkart Private Limited, we take the burden off your shoulders, ensuring seamless TDS compliance and a smooth property transaction process.

Contact us today to experience hassle-free TDS compliance and expert assistance in all your