Question 1

What is TDS and who is responsible for deducting it?

Accepted Answer

TDS is tax deducted at source: the payer withholds a portion of certain payments and deposits it with the government against the recipient's tax liability. The responsibility to deduct, deposit and report sits with the payer, not the recipient. Consult our advisors for guidance specific to your payment type.

Question 2

Why do NRIs face higher TDS when selling property in India?

Accepted Answer

Payments to non-residents are covered by a different set of provisions, and deduction is generally applied on the sale consideration rather than the gain. That often means far more tax is withheld than is finally payable. Consult our advisors for guidance specific to your transaction.

Question 3

Can TDS on an NRI property sale be reduced before the transaction happens?

Accepted Answer

In many cases a lower or nil deduction certificate can be applied for before the sale is completed, where the applicant is eligible. Applying early matters, because it is difficult to correct once the buyer has already deducted and deposited the tax. Consult our advisors for guidance specific to your eligibility.

Question 4

What happens if TDS is deducted but not deposited or returns are not filed on time?

Accepted Answer

Late deposit and late filing attract interest and fees, and the recipient may not see the credit reflected in their tax records. Repeated defaults can also lead to disallowance of the related expense. Consult our advisors for guidance specific to your situation.

Question 5

How do I check if my TDS has been correctly credited?

Accepted Answer

Your Form 26AS and Annual Information Statement show the TDS reported against your PAN, and these should match the certificates you hold. Where they do not, the deductor usually needs to file a correction return. Consult our advisors for guidance specific to your records.

TDS for NRIs & Businesses

What this service covers

Who needs this

Businesses making salary, contractor, rent or professional fee payments

NRIs selling property in India, where higher default TDS applies on the sale value

NRIs receiving rental income from Indian property

Companies making payments to non-resident vendors or foreign parent and group entities

Documents and steps typically required

Frequently asked questions

NRI Taxation & Compliance

Income Tax Returns

GST Returns & Compliance

Ready to get started with TDS for NRIs & Businesses?