As an NRI (Non-Resident Indian), you may be wondering what happens if NRI pay 1 percent TDS on property. The TDS is a tax that's deducted from your income at the source, before it reaches you. In the case of property, the TDS is deducted from the sale price of the property when you sell it.
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What if NRI pays 1 percent TDS?
Now, if you pay 1 percent TDS(Tax Deducted at Source) on your property, it means that 1 percent of the sale price will be deducted as tax and paid to the government on your behalf. The TDS is considered an advance payment of your tax liability, and it will be credited against your final tax liability when you file your tax returns.
For example, if you sell a property for 10 lakh rupees and pay 1 percent TDS, that means that 10,000 rupees will be deducted from the sale price and paid to the government. You'll receive 9 lakh rupees after the TDS is deducted.
However, if your final tax liability is higher than the TDS you paid, you'll need to pay the remaining amount when you file your tax returns. If your final tax liability is lower than the TDS you paid, you'll be eligible for a refund.
TDS is considered an advance payment of your tax liability, and it will be credited against your final tax liability when you file your tax returns. If your final tax liability is higher than the TDS you paid, you'll need to pay the remaining amount, and if it's lower, you'll be eligible for a refund.
I hope my answer on what happens if NRI pay 1 percent TDS on property has cleared your doubts.
Read more:
What is TDS on the sale of property in case of joint sellers?
How to file TDS on the sale of the property?
What is TDS on sale of property by NRI?
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What if NRI pays 1 percent TDS?
Divya
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1 Year
2023-02-07T15:44:02+00:00 2023-02-07T18:58:40+00:00Comment
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