TDS on Property Sale by NRI

[Sandeep Srivastava]

Under Section 195, for NRI seller, Buyer has to deduct 20.6% TDS on Total Sale Value. However Seller CA is insisting that i should deduct 20.60% TDS on CAPITAL GAIN only without any indexation benefit (Selling Price - Noida Authority Transfer Charges- Purchase Price).... CA is ready to give certificate for this .... What should i do... whether on basis of CA certificate , shud i deduct 20.6% TDS on CAPITAL GAIN......Seller is telling that their Income Tax Dept at Dehradun do not issue lower/Nil TDS certificate under Section 197 and they will not issue because they are not asking any rebate in TDS rate..... What to do ?? I also agree that 20.6% TDS on whole sale value is huge money and no seller will be ready for this....

[Sandeep Srivastava]

Is there no expert on subject Matter....My query is still unanswered ??

AI Summary

TDS on nonresident property sale may be required on full sale consideration absent a lower deduction certificate. Buyer withholding on a nonresident's property sale is disputed: buyer interprets the law as requiring deduction on full sale consideration; seller's accountant advises withholding only on the capital gain component and offers a certificate; the seller states the tax office will not issue a lower/nil withholding certificate, leaving uncertainty whether the buyer must withhold on the total sale value absent an official certificate.