TDS is only a provisional tax deducted at a fixed rate — even if you sell the property at a loss. Your actual tax liability is capital gains tax, which is calculated on the real profit from the sale.
After the financial year ends, you must file your income tax return, compute your actual capital gains, and claim a refund if excess TDS has been deducted.
NRIs face additional challenges, especially after the removal of indexation benefits, which may result in higher capital gains tax.
Understanding the difference between TDS and actual tax liability is crucial while selling property in India.
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