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

Buyer Seeks Guidance on Correct TDS for Property Purchase from NRI Under Section 195; Seller's CA Suggests Alternative. A buyer is seeking advice on the correct tax deduction at source (TDS) for purchasing property from a non-resident Indian (NRI) seller. The buyer is aware that under Section 195, a 20.6% TDS on the total sale value is required. However, the seller's chartered accountant (CA) suggests deducting TDS only on the capital gain, excluding indexation, and is willing to provide a certificate for this. The seller claims that their local tax department does not issue a lower or nil TDS certificate. The buyer is concerned about the high TDS on the total sale value and seeks guidance.