What happens when NRI sells property in India?

When an NRI sells property, the buyer is liable to deduct TDS @ 20\%. In case the property has been sold before 2 years(reduced from the date of purchase) a TDS of 30\% shall be applicable.

Can NRI claim TDS refund on property sale?

If NRIs file Income Tax Returns (ITR) after the financial year has ended in India, they can claim refunds on the deducted TDS. For an NRI to claim a refund on the TDS deducted, he/she must self-compute their income and tax liability according to existing slab rates.

How can NRI avoid TDS on property sale?

Reduce your TDS Liability by filing application in Form 13 To reduce the TDS on Sale of Property by NRI, the NRI is required to file an application in Form 13 with the Income Tax Department for issuance of Certificate for Nil/ Lower Deduction of TDS.

Can a person of Indian origin sell property in India?

A PIO can sell non-agricultural property/land to resident Indian. But PIO cannot sell agricultural land or plantation property or farm house to a resident Indian. The only exception is that agricultural land cannot be gifted to NRIs or PIO. Agricultural land or plantation property or farm house can only be inherited.

How can I avoid tax on property sale in India?

Exemptions from your Gains that Save Tax Section 54F (applicable in case its a long term capital asset)

1. Purchase one house within 1 year before the date of transfer or 2 years after that.
2. Construct one house within 3 years after the date of transfer.
3. You do not sell this house within 3 years of purchase or construction.

How can I avoid paying tax on selling property in India?

Once you have calculated your capital gains and the type, the next step is to include it in your income tax returns. You have to disclose details like cost of purchase, type of asset, sales consideration, transfer expenses, etc. in your income tax details.

Is RBI permission required for sale of property by NRI?

Purchase of Property by NRIs An NRI or a Person of Indian Origin (PIO) is legally entitled to buy residential and commercial properties in India without prior permission from RBI and there is no restriction on the number of immovable properties they can buy.

Can NRI sell property in India RBI permission?

A person of Indian origin resident outside India does not require any permission to transfer any immovable property in India other than agricultural land/farm house/plantation property, by way of sale to a person resident in India.

Is TDs applicable on sale of property by NRI in India?

When a NRI makes a sale of property in India the buyer is required to deduct TDS under section 195 of the Income Tax Act 1961. The rate of the tax deduction is not fixed at 1\% unlike section 194IA in this case. Rather, it would depend upon the nature of capital gains arising out of the transaction like

How can an NRI apply for a lower TDs deduction certificate?

Apply for a certificate for deducting TDS at a lower rate. In this option, an NRI can apply for a lower TDS deduction certificate from Jurisdictional Assessing Officer in Income Tax department for allowing the residential buyer to deduct tax at a rate lower than TDS Rates as mentioned above.

What is TDs on sale of property by non resident U/S 194ia?

In our first part, we already discussed TDS on sale of property by resident u/s 194IA @1\%. through this blog we will enhance our understanding on the tax to be deducted by Non-Resident seller. When a NRI makes a sale of property in India the buyer is required to deduct TDS under section 195 of the Income Tax Act 1961.

What is the TDs when buying a property?

It is a primary responsibility of the buyer to make sure that before purchasing a property from a resident or a nonresident, an appropriate amount of TDS as applicable as per Income Tax act is deducted and paid to the government well within time.