Under the India income-tax law, if the seller qualifies as non-resident in India during the relevant financial year, the buyer is required to deduct TDS (tax deducted at source) at specified rate (plus applicable surcharge and health and education cess) on taxable capital gain on sale of immovable property. The specified rate is 20% (plus applicable surcharge and health and education cess) in case of long-term capital gain (LTCG) and 30% (plus applicable surcharge and health and education cess) in case of short-term capital gain (STCG).
If the seller qualifies as resident in India during the relevant financial year, the buyer is required to deduct TDS at the rate of 1% on sale consideration if the sale consideration exceeds ₹50 lakh.
