yashsr (CA) (2285 Points)
31 March 2013Hello,
Date of Transaction: 3rd April 2013 (Assessment Year 14-15)
Assuming I purchase a flat for Rs.1.25 Crores and take a loan for Rs.60 lacs for the same. Now how much TDS need to be deducted assuming the seller is not a Person Resident in India? I am a Person Resident in India.
Also, what should be done if I do not have TAN no.? Can I apply now and then make payment of TDS in first week of May for the transaction on 3rd April 2013?
Sumit Grover
(Chartered Accountant )
(3652 Points)
Replied 01 April 2013
Mihir
(Wealth Manager)
(5293 Points)
Replied 01 April 2013
Transaction after 1st June will attract TDS.
With effect from June 1, 2013, any person who acquires an immovable property (other than agricultural land) from a resident transferor and where the value of consideration exceeds Rs 50 Lakhs, shall be required to deduct tax at source at the rate of 1 percent.
So You need not deduct any TAX.
yashsr
(CA)
(2285 Points)
Replied 01 April 2013
TDS is always deductile if you are paying any sum to NRI @ the prevailing rate.
https://www.indiantaxupdates.com/2012/10/30/purchase-of-immovable-property-from-non/
CA.SKR
(CA; CS-Final (One Group); DISA (ICAI); Insolvency Professional)
(442 Points)
Replied 05 April 2013
TDS at the prevailing rate was to be deducted from Non-Resident on the entire sales consideration of flat on payment or credit, whichever is earlier, as per provisions of Sec-195 of the Income Tax Act. Please go through Sec-195 carefully.
yashsr
(CA)
(2285 Points)
Replied 06 April 2013
| Originally posted by : CA.SKR | ||
 |
TDS at the prevailing rate was to be deducted from Non-Resident on the entire sales consideration of flat on payment or credit, whichever is earlier, as per provisions of Sec-195 of the Income Tax Act. Please go through Sec-195 carefully. |
 |
Thanks! What is the prevailing rate? Is it 10% or 20% for NRIs in relation to Immovable Property.
CA Deepak Rathore
(EXPERT)
(281 Points)
Replied 06 April 2013
(section 194IA) are going to be effective from 1st June 2013..
Further see the above provision
Conditions:
a) This provision will be applicable in respect of transactions effected on or after 01.06.2013.
b) It seeks deduction of tax at source on transfer of certain immovable property other than agricultural land referred to in section 2(14).
c) Any person being a transferee who is liable to pay to a resident by way of consideration for transfer of any immovable property shall at the time of credit of such sum to the account of the transferor or at the time of payment in whatever manner, has to deduct tax at source at 1 percent.
d) The liability to deduct tax at source is at the time of actual payment or credit of such sum to the account of the transferor whichever is earlier.
e) The threshold limit for application of tax deduction at source is Rs.50 lakhs. Where the transaction is less than Rs. 50 lakhs, the liability to deduct tax at source will not be applicable.
f) Since the expression used in the section is “any sum by way of consideration” the provisions of section 50C will not interfere. Hence, tax deduction at source will be with reference to apparent consideration only.
Analysis:
a) Consideration may be given before 1st June
b) Since TDS is always deducted at the time of credit or payment whichever is earlier, so if consideration is credited before 1st june, say 25th May and consideration is paid on or after 1st June, the liability to deduct tax does not arises.
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