Purchase of building from nri - tds compliance?
This query is : Resolved
CA CS Jainam Shah
(Querist)
03 September 2012
Mrs. X has purchased building worth Rs. 9,51,000/- from Mrs. Z(NRI) around June 2012.
My Questions:
1.How much TDS should be deducted?
2.What are the compliances if TDS has not been deducted?
3.Please explain the refund procedure for NRI?
My Questions:
1.How much TDS should be deducted?
2.What are the compliances if TDS has not been deducted?
3.Please explain the refund procedure for NRI?
Praveen Kumar Rathi
(Expert)
04 September 2012
Sec. 195 would require tax deduction at source on payments to non-resident, which are chargeable to tax in India. The purchaser on purchase of a property from a non-resident is expected to deduct tax “on income by way of long-term capital gains” at 20 per cent. The purchaser cannot know the cost of the asset and cost of improvement to the seller so as to arrive at capital gains unless the non-resident seller co-operates with the purchaser.
CA CS Jainam Shah
(Querist)
04 September 2012
Thank you for your answer..
But I had not understood it completely..
Can you please explain in detail..??
But I had not understood it completely..
Can you please explain in detail..??
CA. Anuj Gupta
(Expert)
06 September 2012
Obtain the certificate from ITO u/s 195 or 197.
Anuj
femaquery@gmail.com
Anuj
femaquery@gmail.com
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