Is TDS applicable on NRO account?

TDS will be deducted on the interest earned from NRO account @30\% plus applicable cess and surcharge. The TDS rate is 31.2\% on interest upto Rs 5 million. The entire NRO interest is subject to TDS without any exempted threshold.

Who will pay 1 TDS on sale of property?

purchaser
The purchaser of an immovable property (whether built up or under construction) of value Rs 50 lakh or more has the responsibility under the Income-Tax Act, 1961, to pay withholding tax of 1\% from the sale consideration payable to the seller of the property.

How buyers can deduct TDS u/s 195 if they are buying a property from NRI ie property sale by NRI?

1. TDS is to be deducted by the buyer as per provisions of Section 195. The surcharge shall be subject to marginal relief: 50 lakhs, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of Rs.

Is TDS on NRO account refundable?

Any interest credited to NRI individuals, irrespective of the amount, is the net amount (post TDS deducted amount). This means that an NRI earning interest income from NRO account as the only source of income, can avail income tax refund for income up to Rs. 10,000 earned in India.

Who pays TDS buyer or seller?

TDS has to be deducted by the buyer on the entire amount that is paid or credited to the seller when the amount exceeds Rs 50 lakh. For example, if a property is bought for Rs 70 lakh then TDS has to be deducted on the entire amount–that is Rs 70 lakh, not on just the Rs 20 lakh that exceeds the Rs 50 lakh threshold.

Who should pay TDS?

When should TDS be deducted and by whom? Any person making specified payments mentioned under the Income Tax Act are required to deduct TDS at the time of making such specified payment. But no TDS has to deducted if the person making the payment is an individual or HUF whose books are not required to be audited.

What if TDS is not deducted on sale of property?

The penalty of not paying TDS on immovable property can be up to Rs. 1 lakh under Section 271H. To avoid penalty, you can pay the TDS, interest amount and late payment fee as soon as you receive a tax notice.

What if buyer does not deduct TDS?