Recently I was asked a question by someone that at what rate TDS is to be deducted at the time of purchasing a property in India from a non-resident.
The answer to the question lies in the simple reading of the Income Tax Act'1961.
Let us examine the relevant Sections of the Income Tax Act'1961.
The transferor or the seller contemplated in this section should be a resident of India. Therefore, this section only deals with sale of property by residents and TDS @1% is to be deducted on such sale by resident seller provided the consideration for sale of property exceeds Rs. 50 lacs.
Now let us examine relevant extracts of section 195 of the Income Tax Act'1961.
Hope you find the above information relevant and useful in your daily practice.