An NRI son is selling the family villa in Ambli — how much TDS will the buyer cut?
When the seller is a non-resident the buyer must deduct TDS under Section 195 on the full sale price, not on the gain — 12.5% plus surcharge and cess on a long-term sale, which on a ₹3 crore Ambli villa is over ₹40 lakh withheld even if the actual tax is a fraction of that. The fix is a lower-deduction certificate under Section 197 obtained from the Assessing Officer before the sale deed, which caps the TDS at the real liability. After the deed is registered the only route is a refund through the return, which takes months. We prepare the 197 application, the capital-gains computation the officer wants to see, and the buyer's TAN registration and quarterly 27Q statement — the Form 141 route (the old 26QB) is only for resident sellers.
TDS on property sale by NRIs