Let us learn today about the TDS compliances when an NR sells property in India to a Resident person.

✅ Buyer must obtain a TAN (Tax Deduction and Collection Account Number) for TDS deduction.

✅TDS is deducted at tax rates in force (plus surcharge & cess) - refer image for holistic analysis

✅ TDS must be deposited u/s 195 and TDS Return using Form 27Q must be filed for payments made to NRs.

✅ Buyer must issue Form 16A (TDS certificate) to the NR seller after TDS deposit.

✅ NR seller needs a PAN and may need a Tax Residency Certificate (TRC) for DTAA benefits.

✅ File Form 15CB (CA certificate) and Form 15CA (remittance declaration) before transferring funds to the NR.

✅ NR seller must file an Income Tax Return in India to report capital gains and claim any refund.

Ensure proper compliance to avoid penalties!