Capital loss of an nri

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Dibyendu Mazumder (Querist)

29 July 2019 My client is an NRI for the F.Y, 2019-20, He wants to sale of his property situated in india, after computation his capital gains in estimated basis it is found that the incurred capital loss from the sale of property, If he incurred this transaction the purchaser liable to deduct TDS @20.8% or @22.88% on the sale consideration value, my question is :
1. If client apply tax exemption certificate u/s 195(3) to A.O. whats the procedure ? what form need to be filled up ? is he eligible to apply by Form 13, for nil deduction U/s 197?he not want to get refund after filling R.O.I.
2. if he get certificate , is purchaser need to be file 27Q for this property transaction?
3. Is the buyer/purchaser need to be file From 15CA for remittance of sale consideration value to the NRI seller? i think From 15CB not require if he get Tax Exemption Certificate from A.O.
4. Any difficulty arise because he not file any R.O.I in previous years in India?

Regards

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

30 July 2019 The purchaser is liable to deduct TDS at 20.8% on capital gains only not on sale consideration.
1 See the link
https://taxguru.in/income-tax/online-certificate-1952-1953-deduction.html
2 No need of TDS and filing form.
3 15CA and 15CB required.
4 No problem.

Dibyendu Mazumder

Dibyendu Mazumder (Querist)

30 July 2019 But sir if the seller not get Tax Exemption Certificate u/s 195(3) OR 197 the buyer safer to deduct the TDS on sale consideration value, the buyer is not aware to calculate indexation benefit or exemption enjoyed by the seller from property sale? so, if seller is not get TEC then buyer deduct TDS on full consideration amount ? Is seller get TEC then 27Q filling by buyer is required or 15CA/15CB submission is sufficient ? or both required?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

30 July 2019 1 Seller to file online 195(3) and get it. Easy to get it from international tax division online.
2

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