TDS is deducted by the buyer under Section 195 of the Income Tax Act, 1961, which is based on the nature of the capital asset and is usually about 12.5% on LTCG with additional cess and charges. TDS can also be reduced by claiming DTAA benefits. First, you must submit Form 10F to your bank, along with a Tax Residency Certificate from your country of residence. The bank will subsequently apply the lower TDS rate established by the DTAA on all future interest payments.
