Lower Tax Certificate on Sale of Properties by NRI

As per Section 195 of the Income Tax Act, payment to a Non resident, be it sale consideration towards the sale of property, Rent, Interest, Professional fees, commission, royalty, etc., is subject to Tax Deduction at Source (TDS).

How much TDS is to be done in case of sale of property or on Rental income?

Suppose, an NRI sells a flat in Bangalore for Rs.90 lakhs, the buyer of the property has to deduct TDS at 22.88% (FY 2018-19).

In order to reduce the TDS burden, the seller of the property can apply to the department to issue a certificate for deduction of lower rates or no deduction of tax.

We at Balakrishna and Co have gained good exposure in dealing with NRI taxation, TDS and Lower tax certificate services. Those who want more information or services may kindly write to

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  • Ph: 9845721255 / 9448080886,
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  • Balakrishna & Co|Chartered Accountants,
  • # 24,3rd Floor, Above State Bank of India,
  • 10th Cross, Wilson Garden, Bangalore - 27.

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