Tax & TDS on sale of Property

When an NRI (Non-Resident Indian) sells property in India, Tax Deducted at Source (TDS) is applicable on the sale proceeds, as per Indian tax law. The buyer is required to deduct TDS before making the payment to the seller and deposit it with the Income Tax Department.

Can NRIs claim a lower TDS rate on property sales?

Yes, if you are eligible for benefits under the Double Taxation Avoidance Agreement (DTAA) between India and your country of residence, you can apply for a Lower TDS Certificate to reduce the TDS rate. You need to submit Form 13 to the Income Tax Department to request this.

Do I need to file an income tax return after selling property in India?

Yes, as an NRI, you must file an income tax return in India to report the sale of property, claim deductions or exemptions, and seek a refund if the TDS exceeds your actual tax liability.

At KBPS Associates, we can guide you through the complexities of TDS on property sales in India.

• TDS Calculation: We help ensure the correct TDS is deducted based on your capital gains.
• DTAA Benefits: We assist you in applying for a Lower TDS Certificate if you are eligible under DTAA provisions.
• Tax Filing: We help you file your income tax returns, claim refunds, and ensure compliance with Indian tax laws.
• Document Management: We ensure all necessary documentation is in place, including Form 16B, to avoid issues during tax filing.

At KBPS Associates, we are committed to making the process of property sales and tax compliance in India hassle-free for NRIs. Let us handle the complexities, so you can focus on what matters most to you. Contact us today for expert guidance and seamless support!