What is Lower/NIL TDS deduction certificate?

If a resident is making payment to anon-resident, then he shall deduct withholding tax at the prescribed rate. But sometimes, the income tax applicable for that nonresident on such income is less than the applicable withholding tax rate, in that case, that NRI can request income tax authorities to issue lower/NIL TDS deduction certificate depending on his case to save himself from the hardship of higher rate of TDS.

How Long It Takes to Get NIL/Lower TDS Certificate and Who Issue Lower TDS Deduction Certificate?

In case of a nonresident who sells an immovable property (held for long term) in India, the buyer is liable to deduct withholding tax at the rate of 20% (plus edu cess, surcharge etc.) on sale consideration. To recover the refund of extra TDS deducted, nonresident seller, shall file his tax return in India which he can do only after the end of the financial year. It may take months/years to complete the process and in getting the refund. To avoid this hassle, a person can apply for lower or nil TDS deduction certificate for NRI to income tax authorities depending on his case. Now, this facility is available online. By availing this facility, nonresidents can avoid deduction of huge withholding tax.

Does an NRI require to be present for lower deduction certificate?

Not exactly, He can authorize anyone on his behalf and get it finished from his country of current residence. You can authorize NRI CA Services to take care of end-to-end TDS proceedings.

How to Obtain TDS Exemption certificate for NRI Sale of Property?

To obtain NIL or No TDS Certificate, a calculation need to be submitted along other documents to satisfy Assessing officer that there is no capital gain is emerging from the assigned property sale.

How to Get Nil/Lower TDS Deduction Certificate with Our Assistance?

We have already obtained these Lower/ Nil TDS deduction certificates for many of our clients in spite of the fact this online facility has started very recently. We will ask you to send us the required documents to file the application to obtain TDS deduction details online and lower/NIL TDS deduction certificate on your behalf. We will keep following up and updating you about the status of the application. We will try to get the certificates at the earliest.

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