Praveen J & Associates
TDS & TCS · TDS on Property from NRI (Section 195)

TDS on Property Purchase from NRI (Section 195) — Rules, Rates & Compliance

NRI se property kharidte ho? 194IA nahi — Section 195 lagta hai, TDS rate bhi alag aur zyada hota hai.

Correct rate, lower deduction certificate, 27Q return aur 15CA / 15CB — full NRI property compliance.

4.8/5
CA Verified 100% Compliant

Talk to a CA — free callback

Share details, our CA will connect within 30 mins.

No spam. 100% confidential.

Common Problems Faced

Wrong section applied (194IA vs 195)

TDS @ wrong rate — heavy penalty risk

Lower deduction certificate not used

15CA / CB missed

27Q filing complexity

About Section 195 (NRI seller)

  • Applies to property purchased from NRI/non-resident
  • TDS on capital gains, not consideration
  • Higher base rate (20% LTCG + surcharge + cess) unless lower cert
  • Filed via Form 27Q (not 26QB)
  • 15CA + 15CB needed for remittance abroad
Note: Lower deduction certificate u/s 197 can dramatically reduce TDS — apply before sale.

Who Should Use This Service?

Buyers of NRI-owned property

Joint NRI seller cases

High-value transactions

Cases needing repatriation abroad

Property inherited by NRI sellers

Benefits

  • Correct Section 195 compliance
  • Lower TDS via Section 197 (where possible)
  • 27Q + 15CA / CB handled
  • Repatriation cleared smoothly
  • Penalty & disallowance avoided

Important Points

  • TAN of buyer mandatory (no 26QB route)
  • Lower cert must be obtained BEFORE sale
  • DTAA may give relief
  • Form 27Q + 16A to NRI seller
  • RBI / FEMA compliance for remittance

Our Process

1

Confirm NRI status & nature of gain

2

Apply for lower deduction cert (if eligible)

3

Deduct & deposit TDS as per certificate / default rate

4

File Form 27Q

5

Issue 16A & assist 15CA / 15CB for repatriation

Documents Required

PAN of buyer & NRI seller
Sale agreement
NRI residency proof
TRC + Form 10F (if DTAA)
Lower deduction certificate (if any)

Frequently Asked Questions

Nahi — Section 195 applies.

Ready to move forward?

CA-led TDS & TCS support — fast, accurate, compliant.