Long term capital gain

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This discussion clarifies the Tax Deducted at Source (TDS) requirements for non-residents selling property in India. Specifically, it addresses whether TDS applies to the entire sale consideration or just the long-term capital gain (LTCG). The consensus points towards TDS being deducted on the entire sale amount at a rate of 20.8%, referencing Section 195 of the Indian Income Tax Act. It also touches upon the necessary documentation, suggesting that the non-resident's PAN is generally sufficient.

P.Madhivadhanan

P.Madhivadhanan (Querist)

27 January 2020 An asseessee who is a non-resident sold her flat to a resident for 7500000 in india. Long tem capital gain works out to 552000. Resident is to deduct TDS on that amount . I want to know whether TDS is to be deducted on LTCG OR ON ENTIRE SALE CONSIDERATIION AND RATE OF TDS. Any form or declaration to be given by Non -resident to deduct TDS? Only PAN of non-resident is enough.

Zeal Bangdiwala

Zeal Bangdiwala (Expert)

27 January 2020 TDS will be deducted on the entire sale amount at the rate of 20.8%

P.Madhivadhanan

P.Madhivadhanan (Querist)

27 January 2020 PLEASE REFER SECTION 195 , WHERE IN IT IS SAID THAT TDS IS TO BE DEDUCTED ON "ANY OTHER LONG TERM CAPITAL GAIN ( not being covered u/s 10(33), 10(36) and 112A) @ 20% on LTCG +EC+SC. Clarify it

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