Answer

1. F

   Facts

   When an NRI sells property in India, the buyer must deduct TDS at 20% (LTCG rate) or 30% (STCG rate) on the ENTIRE sale consideration, not just the gain. This is the most commonly mishandled NRI transaction. A ₹1Cr property sale → buyer must deduct ₹20L in TDS. NRI then claims refund after filing ITR.

2. P

   Provisions and law

   • Sec 393 (old 195)
   • Rule 220 (old Rule 37BB)
   • Sec 248
   • Sec 200
3. A

   Analysis

   The TDS problem: Section 393, Income-tax Act 2025 (old Sec 195) requires TDS on the ENTIRE consideration (not just gain). ₹1Cr property → buyer must deduct 20% = ₹20L TDS from payment to NRI seller. NRI receives ₹80L. NRI then files ITR, computes actual LTCG (say ₹30L), tax on LTCG ₹3.75L (12.5%), claims refund of ₹20L − ₹3.75L = ₹16.25L. Refund takes 6-12 months. Lower TDS certificate, the solution: NRI seller applies to Assessing Officer (under Sec 395(2) (old Sec 195(2)) or Sec 248) for a certificate allowing lower TDS. Certificate specifies TDS only on the actual capital gains portion, not full consideration. This dramatically reduces upfront TDS. Process takes 30-60 days. NRI seller should apply well before property transaction. DTAA benefit: Many DTAA (India-USA, India-UK, India-UAE etc.) allow lower TDS rates or provide that capital gains from immovable property are taxed only in the country where property is situated (India).

4. C

   Conclusion

   1. 1Buyer: Confirm seller is NRI (check FEMA status, check NRO/NRE account, check PAN with non-resident status)
   2. 2Seller: Apply for lower TDS certificate from IT AO at least 45-60 days before transaction
   3. 3CA: Prepare Form 146 (old Form 15CB), computation of LTCG, applicable tax rate, DTAA benefit if any
   4. 4Buyer: Deduct TDS at 20% (LTCG) or 30% (STCG) on full consideration unless lower certificate obtained
   5. 5Buyer: Deposit TDS via Challan 281 within 7 days of next month end
   6. 6Buyer: File Form 144 (old Form 27Q; not Form 140 (old Form 26Q)) for non-resident TDS quarterly return

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.