We report, for the first time, the luminescence property of the hydroxyl group surface functionalized quantum dots (QDs) and nanoparticles (NPs) of SnO2 using low energy excitations of 2.54 eV (488 nm) and 2.42 eV (514.5 nm). This luminescence is in addition to generally observed luminescence from 'O' defects. The as-prepared SnO2 QDs are annealed at different temperatures under ambient conditions to create NPs with varying sizes. Subsequently, the average size of the NPs is calculated from the acoustic vibrations observed at low frequencies in the Raman spectra and by the transmission electron microscopy measurements. Detailed photoluminescence studies with 3.815 eV (325 nm) excitation reveal the nature of in-plane and bridging 'O' vacancies as well as adsorption and desorption occurring at different annealing temperatures. X-ray photoelectron spectroscopy studies also support this observation. The defect level related to the surface -OH functional groups shows a broad luminescence peak at around 1.96 eV in SnO2 NPs which is elaborated using temperature dependent studies.