You are considered an Indian resident for a financial year:

i. When you are in India for at least 6 months (182 days to be exact) during the financial year

ii. You are in India for 2 months (60 days) for the year in the previous year and have lived for one whole year (365 days) in the last four years

Any capital gain on transfer of capital asset which is situated in India shall be taxable in India. Capital gains on investments in India in shares, securities shall also be taxable in India.

If you sell a house property and have a long-term capital gain, the buyer shall deduct TDS at 20%. However, you are allowed to claim capital gains exemption by investing in a house property as per Section 54 or investing in capital gain bonds as per Section 54EC.

 Capital gains are exempt proportionately if the cost of the new asset is less than net consideration. Remember, if the new asset purchased is transferred or sold back within 3 years, then the profit exempted will be added to the income in the year of sale/transfer. The benefits above may be available to the NRI even when he/she becomes a resident – until such an asset is converted to money, and upon submission of a declaration for the application of the special provisions to the assessing officer by the NRI. 

Yes you can claim it only if your doesn't come under the tax bracket for which your income is for that year.  If it exceeds then you have to pay the tax ans cannot claim the tds as it will be adjusted

If you sell your house and reinvest in the new residential house you will be getting 100% rebate on it.

The purchaser of property will give you a copy of Form 16B which is a type of TDS certificate showing the amount paid. This is the document you need when filling your tax return to claim the refund of the TDS.

You are right in understanding the law in this regard.

For further assistance in this connection , you may contact your chartered accountant who will be able to guide properly in all future issues in this regard.

TDS at 20 per cent would be deducted 

sonxe there is is no capital gain and you are reinvesting capital gains you can claim refund of TDS 

TDS at 20 per cent would be deducted 

sonxe there is is no capital gain and you are reinvesting capital gains you can claim refund of TDS 

Your interpretation is correct 

Your interpretation is correct 

TDS u/s 195 In case of sale of property by NRI, it is mandatory for buyer to deduct 20.66% TDS on the sale price of the property if capital gain is long term capital gain. In case of short term capital gain, TDS will be 33.99% irrespective of income tax slab of NRI as i mentioned earlier also. Buyer will deposit TDS with Income Tax Department. TDS is applicable even if value of property is less than 50 lakhs. For resident Indian seller TDS of 1% is applicable only if the property value is more than 50 lakhs.

Dear client 

First of all the TDS will not be 20% of the sale amount it is 1% of the total sale of property and Yes you can claim TDS by reinvestment in the property.

And For allowing refund of TDS on property for those who invest their capital gains. When a property is sold, TDS is deducted by the buyer at 1% of the total sale price. This TDS is deposited with the government by the buyer. The seller is allowed to take credit of TDS in his tax return. But if the seller wants to invest his gains in another asset, his gains will be exempt from tax and TDS will be refunded.

Those who want to invest their gains, usually make the sale/purchase deal in quick succession. Property transactions are planned in such a way so as to immediately invest receipts. Such taxpayers have to wait to file their return to claim refund of TDS deducted by the buyer.

For instance, if you have sold a property for R1 crore, TDS on it will be R1 lakh. Even though you may have invested the gains immediately, TDS will be refunded only after your return has been duly submitted and processed by the tax department.

At the time of refund, interest is paid at 0.5% from April 1 of the assessment year where return has been filed within the due date. So your TDS earns an interest of 0.5% from April 1 of the assessment year, even though it may have been deposited by the buyer much earlier.