tds u/s 195

[satbir singhwahi]

Purchasing flat from NRI , the tds to be deducted at 20.6 percent . If the seller NRI does not have PAN then also 20.6. kindly guide.

[MANDAVILLI RAMAKRISHNA]

mr. satbir singh wahi,

verify whether he is resident or not ordinary resident or non resident as per Income tax laws if non resident, the NRI should have PAN number as he has to obtain CA certificate from

transferring funds from India to abroad and has to pay the taxes on capital gains and other transactions in respect of the current financial year.

the income tax slab rates are different for NRI so more tax to be paid than normal residents. obtaining PAN number is compulsory so obtain PAN no. and then deduct TDS if you want to clear in your side. If the NRI also to be cared, advise him to obtain pan no. and CA certificate also

Regards

RK 

AI Summary

TDS on nonresident sellers: verify residential status, obtain PAN and CA certificate before applying NRI withholding rates. Verify the seller's residential status under income-tax law; require the nonresident to obtain a PAN and, where necessary, a Chartered Accountant certificate to determine capital gains tax and proper TDS deduction; advise the NRI seller to secure PAN and a CA certificate so the purchaser can deduct and deposit tax at the applicable nonresident withholding rate.