Can NRIs Sell Property in India Without TDS Deduction?
Learn if NRIs can sell property in India without TDS and how to apply for a Lower or Nil TDS Certificate to reduce tax deduction at source.
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NRIs (Non-Resident Indians) can sell property in India, but TDS (Tax Deducted at Source) must be accounted for. The buyer is required to deduct TDS at the rate of 20% plus applicable surcharge and cess on long-term capital gains and 30% plus applicable surcharge and cess on short-term capital gains. However, NRIs can apply for a Lower or Nil TDS Certificate from the Income Tax Department if they believe their tax liability is lower than the TDS to be deducted. Consulting a tax expert is advisable to navigate this process efficiently.
FAQs & Answers
- Is TDS mandatory when NRIs sell property in India? Yes, TDS is mandatory and the buyer must deduct tax at source at prescribed rates on capital gains when NRIs sell property in India.
- Can NRIs avoid TDS on property sale in India? NRIs cannot entirely avoid TDS but can apply for a Lower or Nil TDS Certificate from the Income Tax Department if their actual tax liability is less.
- What are the current TDS rates applicable on NRI property sales? The TDS rate is 20% plus surcharge and cess on long-term capital gains and 30% plus surcharge and cess on short-term capital gains for NRIs selling property.