Investment in bonds u/s 54ec by nri's

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 May 2013 CAN NRI ESCAPE THE TDS DEDUCTION U/S 195 BY INVESTING THE LONG TERM CAPITAL GAIN AMOUNT IN THE SPECIFIED BONDS AND PRODUCE THE BOND CERTIFICATE BEFORE BUYER OF IMMOVABLE PROPERTY FOR NO TDS DEDUCTION @20%.

Rupesh Jain

Rupesh Jain (Expert)
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30 May 2013 income tax clause for deduct TDS on sales consideration not on the Capiltal Gain

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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15 July 2013 The rate of TDS on sale of property by anyone is not 20% it is 1%. As regards provisions of Section 195 are concerned it relates to payment out side India. Now, if the property is in India and it has been sold then the taxes have to be paid in India and one cannot transfer funds itself it requires intimation to RBI and with proper certificate from CA to transfer the funds after sale of the property. There is only capital gains and either it is LTCG or STCG tax which is to be paid. If he is NRI then open a NRO account and deposit it in that account and then with the permission from RBI the funds can be transferred only after payment of due taxes on the sales consideration as stated herein above.

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