TDS on Property Purchase from NRI (Section 195) – Rules, Rates & Compliance
Buying property from an NRI in India?
You are legally required to deduct TDS under Section 195 — and mistakes can lead to heavy penalties. 👉 Get expert CA support for accurate TDS calculation, filing & compliance.
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Common Issues Faced
Deducting only 1% TDS (incorrect – applies only to residents)
Not obtaining TAN
Wrong TDS calculation
Incorrect filing or delay in Form 27Q
Ignoring lower TDS certificate (leading to excess deduction)
Section 195 TDS on Property Purchase
When purchasing property from a Non-Resident Indian (NRI), the buyer must deduct TDS under Section 195 of the Income Tax Act.
Key Rules Under Section 195
- TDS is deducted on total sale value (not just capital gains)
- Applicable for all property values (no ₹50 lakh threshold)
- Buyer must obtain a TAN (Tax Deduction Account Number)
- TDS must be deposited with the government
- Return must be filed using Form 27Q
TDS Rates for NRI Property
Plus applicable surcharge and cess
As per individual income tax slab + surcharge & cess
👉 Effective TDS can go 20%–30%+, depending on the case.
How We Help You
Important: Lower TDS Option (Section 197)
In many cases, the seller (NRI) can apply for a Lower TDS Certificate under Section 197 to reduce TDS from 20–30% to actual tax liability.
Our Process
Step 1: Review property transaction details
Step 2: Calculate correct TDS liability
Step 3: Apply for TAN (if not available)
Step 4: Deduct & deposit TDS
Step 5: File Form 27Q
Step 6: Issue TDS certificate
Who Should Use This Service?
Property buyers purchasing from NRIs
Real estate investors
Brokers facilitating NRI deals
Anyone involved in NRI property transactions
Documents Required
Trust Our Expert CA Support
"Handled complete TDS filing for NRI property purchase."
"Saved us from major compliance issues."
"Very smooth and professional process."
Frequently Asked Questions
Avoid costly mistakes while buying property from an NRI.
Get expert CA support for accurate TDS calculation, filing, and compliance.