VS Garg & Associates

  Selling immovable property in India can be a complex process, especially for Non-Resident Indians (NRIs). One critical aspect that often poses challenges is the Tax Deducted at Source (TDS) requirement. To ease this burden, NRIs have the option to apply for a Lower or NIL TDS Certificate. This article provides a comprehensive guide on how to navigate this process, ensuring compliance and minimizing tax liabilities. Understanding TDS on Property Sales for NRIs When NRIs sell immovable property in India, the buyer is required to deduct TDS at a rate of 20% on the capital gains if the property has been held for more than two years (long-term capital gains). For properties held for less than two years (short-term capital gains), the TDS rate is higher, depending on the applicable income tax slab. However, these rates can lead to a substantial amount being deducted, which might not accurately reflect the actual tax liability of the NRI seller. What is a Lower or NIL TDS Certificate? A...