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Buyers deduct TDS on payments to non-residents at the applicable rates, and this appears in your Form 26AS. You claim it in your return, and any excess over your actual tax is refunded.
ITR
TDS on property sale by an NRI
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Provisions
Sec 195 (now Sec 393); Sec 197 (now Sec 395(1))
Analysis
Buyers often deduct on the full sale price. If the price was ₹90 lakh and TDS was worked out on all of it, but your actual long-term gain was only ₹20 lakh, the tax on the gain (about ₹2.6 lakh at 12.5% plus cess, before any surcharge) is far lower, and you claim the excess as a refund by filing ITR-2. Check that the buyer filed the TDS return and the credit shows in 26AS. A lower TDS certificate before sale could have reduced the deduction.
Close
- Get Form 16A from the buyer
- Check the TDS in 26AS for the right year
- Compute capital gains and tax
- File ITR-2 claiming the TDS and refund
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