can firm get lower deduction certifiate for TDS?

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CA Sagar Khanpara

CA Sagar Khanpara (Querist)
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21 March 2010 can firm get lower deduction certifiate for TDS?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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21 March 2010 yes. can be get with applying through form 13

Rajeev

Rajeev (Expert)
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18 April 2010 Dear Sirs ,

I want to apply for a Nil rate of TDS certificate u/s 197 for a NRI who is entering in a property sale deal . Regarding this , the sale consideration is of 2 crores , TDS @ 20.6% ( on sale consideration ) is held in escrow a/c by the lawyers , i.e Rs 40.6 lakhs.

Now the issue is out of 2 crores , My client will claim an exemption of 1.5 crores u/s 54 (which also includes the cost of acquisition of the sold property) The balance 50 lakhs will go in bonds u/s 54EC .

But the bond money will only go when the lawyers release the funds from the escrow a/c(cos the client has only received 1.6 crores , balance is in escrow). The money will only be released when we will provide a certificate u/s 197 .

How will the AO issue me a certificate without me providing a receipt u/s 54EC .

Can i provide an undertaking for the same ? my client is not in a position to deposit additional 50 Lakhs in 54EC from his own pocket.

Also i would like to know the set of documents required in this kind of a case to be submitted along with the application of 197 .

Thanks in advance

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