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.

AI Summary

Ensure TDS Compliance When Buying Property from NRI: Verify Residency, Obtain PAN, and Follow Tax Rules A query was raised regarding the deduction of TDS at 20.6% when purchasing a flat from a Non-Resident Indian (NRI) without a PAN. The response advised verifying the seller's residency status under Indian tax laws. If the seller is a non-resident, they must obtain a PAN and a CA certificate for transferring funds abroad and paying taxes on capital gains. The response emphasized that NRI tax rates differ from those for residents, making it essential to obtain a PAN before deducting TDS to ensure compliance and protect both parties' interests.