Buying property from an NRI seller? You're required to deduct TDS at 20%+ surcharge on the sale value — not just on the capital gain. The safer route: help the seller get a Lower Deduction Certificate.
The correct process
- Seller applies for Lower Deduction Certificate (Section 197)
- Buyer obtains TAN and deducts TDS at certified rate
- Buyer files Form 27Q quarterly and issues Form 16A
- Buyer pays TDS by 7th of next month via challan 281
Need help? Email document@credcompliances.com or use the contact form on our website to start your filing today.