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

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.