CA Vijay R Singh, FCA
Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
Short answerThe buyer does. When an NRI sells, the law makes the buyer responsible for deducting TDS under Section 195, depositing it, and giving you the certificate. You don’t deduct it yourself — but you do need to make sure the buyer does it correctly, because errors become your problem at refund time.
The buyer is the deductor
To do it properly the buyer must hold a TAN, deduct before paying you, deposit the tax by challan, file Form 27Q each quarter, and issue you Form 16A as proof. Most resident buyers have never done this, so they often need guidance.
Why it's still your problem
If the buyer under-deducts, over-deducts, or doesn’t file Form 27Q, the TDS won’t show in your Form 26AS — and then your refund gets stuck. It’s worth walking the buyer through it, or having a CA handle the deduction paperwork.
The clean way to do it
Apply for a lower TDS certificate under Section 197 first — the buyer then deducts one clear, lower amount, and there’s far less to reconcile or claim back. Our NRI property sale & repatriation service manages the whole deduction process.