« Top Headlines » Open DEMAT Account in 24 hrs  ITR Filing 2025: These individuals are exempt from paying tax. Do they need to file returns?  Full List Of Trump's Reciprocal Tariffs Announced Wednesday  Top 5 tax-saving investment options for salaried individuals to consider before March 31, 2025  5 lesser lesser-known avenues of tax saving you can use to save income tax before March 31, 2025  March 15 is deadline for last advance tax installment: Know if you must pay «  A tax paper of the right standard... Assocham pleads for tax reduction... » TDS on purchase of property from an NRI November, 24th 2008 Many taxpayers are not aware that if they make any payment to a non-resident, they are liable to deduct tax at source. Where proceeds of the sale by the non-resident are remitted by a resident purchaser, tax is required to be deducted. In most cases, tax is directly paid by the non-resident. What is the position of law for the resident purchaser in such a case? Sec. 195 would require tax deduction at source on payments to non-resident, which are chargeable to tax in India. The purchaser on purchase of a property from a non-resident is expected to deduct tax on income by way of long-term capital gains at 20 per cent. The purchaser cannot know the cost of the asset and cost of improvement to the seller so as to arrive at capital gains unless the non-resident seller co-operates with the purchaser.