TaxTMI 
TaxTMI 
TaxTMI 
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....
TDS on Property Sale by NRI
Sandeep Srivastava
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. (AI Summary)