Section 195 of income tax act provides that : 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

2) buyer will have  to deduct 20.66 percent TDS on sale price even if value of property is lss than Rs 50 lakhs

3) ask your daughter to execute gift deed for her share of property in favour of your wife 

Your daughter can execute gift deed for her share of property in favour of your wife 

2) gift deed should be stamped and registered 

since your daughter is an OCI, TDS @20.33% on 50% sale price will be applicable and has to be deducted by the buyer 

what is the harm in TDS deduction?

if your wife and daughter invest the capital gains acrrued from sale of the plot in a residential property u/s 54 of the Income Tax Act, then they can always claim refund of the extra tax paid via the TDS 

Dear sir/ma'am,

The mere acquisition of property does not attract income tax. ... The Government of India has granted general permission for NRI/PIO/OCI to buy property in India and they do not have to pay any taxes even while acquiring property in India. However, taxes have to be paid if they are selling this property.

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Your daughter whether she takes the money with her to her country of residence or not, by selling her share in the jointly owned property as a NRI, the sale proceeds towards her share in the sale of property would be subjected to TDS at the rate of 20% if the property has been held for more than two years and 30% if the property is being sold within two years. 

NRI sellers can avail a lower or no TDS deduction certificate by applying for Form 13 online from the income tax department in case their actual tax rate is lower than 22.88%. This will help NRIs to save themselves from the hassle as well as avoid locking their money through TDS .

As per section 195 of the income tax act,  the TDS  will be calculated only on the capital gains instead of calculating on the total sale value.  This can help NRIs to arrive at 1%or 2% of TDS  and in some cases even no TDS is required if there's no actual capital gain amount reflected in calculations. 

Moreover NRIs can also save on TDS by re investing capital gains amount in another property in India within two years from the sale. 

They also can invest the amount in tax free bonds within a span of six months from the date of sale 

NRIs can save on TDS by making wise moves at the time of property sale and even after receiving the proceeds. 

It is important to stay informed and check income tax regulations related to long term and short term capital gains tax before making such sale. 

Hi, In order to avoid tax it is better your daughter can execute the Gift deed in favor her  mother and your wife will become the absolute owner of the property and she can sold to any third parties. Suppose if your wife and daughter can sold the property jointly  then purchaser has to deduct 20 % TDS in your daughter account.

- As per law, an NRI/OCI , who is selling house property which is situated in India have to pay tax on the Capital Gains , and this tax that is payable on the gains depends on whether it’s a short term or a long term capital gains.

- Further, long term capital gains are taxed at 20% and short term gains shall be taxed at the applicable income tax slab rates for the NRI based on the total income which is taxable in India for the NRI.

- Further, when an NRI sells property, then the buyer is liable to deduct TDS @ 20%.

- Further , if the property has been sold before 2 years from the date of its purchase, then 30% TDS shall be applicable.

- However, an NRIs is allowed to claim exemptions under section 54 and Section 54EC on long term capital gains from sale of house property in India.

- Further, as per the Income-tax Act, gifts exchanged between the relatives are not taxable in either’s hands.

- Hence, your daughter can gift her share in favour of her mother .

Yes it's applicable and you can't legally save the same. That depends on your wife tax returns if she receives the same