Should NRIs deduct TDS on property sale?

Under India's income tax laws, any individual buying an immovable property (excluding agricultural land) from a resident seller must deduct TDS at 1% of the total consideration if the purchase price or stamp duty value is ₹50 lakh or more. The TDS is calculated on the higher of two values, not just the amount exceeding ₹50 lakh. This applies equally to both resident and non-resident buyers.

- Harshal Bhuta

I bought a house at a price higher than stamp value. The builder said as an NRI, I don't need to deduct and pay TDS. Is this correct?

-Name withheld on request

Therefore, as an NRI, you are required to deduct TDS if the transaction meets the criteria. The deducted TDS must be remitted to the government by filing Form 26QB within 30 days from the end of the month in which the tax was deducted.

Buyers are not required to obtain a TAN (Tax Deduction and Collection Account Number) for depositing the TDS in such transactions.