I moved to Australia on a Permanent Resident status on 3 July 2016. I had come to India for nearly a month in November 2016 for some work. Before 3 July 2016, I lived and worked in India. I am selling my flat in India. Will the buyer deduct 20% TDS? Will I be considered an NRI? The sale value is Rs51 lakh. I bought the house 4 years ago and its cost to me now is about Rs51 lakh.
The determination of residential status in India is based on physical presence in India in the current financial year and preceding 10 financial years. Assuming your physical presence in India is less than 182 days during the relevant financial year, you will qualify as non-resident in India during the relevant financial year.
Under the India income-tax law, if the seller qualifies as an NRI during the relevant financial year, the buyer is required to deduct 20% TDS (plus applicable surcharge and education cess) on taxable long-term capital gains on sale of immovable property.