Purchase of Immovable Property
This query is : Resolved
Harkanwar Singh Kamra
(Querist)
05 October 2017
Sir
A person is purchasing a commercial property worth 16 lac ,payment being made through bank, from an NRI person who bought the same in year 1994 for 1 lac. Now the seller only has his passport as ID proof.
My question is what will be the tax obligations on the seller and the buyer, if any ? Also How those tax obligations need to be met ?
Thank you in advance
05 October 2017
1. Buyer has to deduct tax u/s 195 is the seller is an NRI now.
2. i) Seller has to take PAN card.
ii) Seller has to compute capital gains and if there is tax liability has to be paid after deducting the tax in (1) above.
2. i) Seller has to take PAN card.
ii) Seller has to compute capital gains and if there is tax liability has to be paid after deducting the tax in (1) above.
Harkanwar Singh Kamra
(Querist)
05 October 2017
Thank you once again sir.
K Srinivas, CMA CS
(Expert)
05 October 2017
I'd like to add:
Seller has to approach and take a certificate from Assessing officer who will estimate the capital gains in hands of seller.
TDS @1% will then be applicable on such capital gains
Seller has to approach and take a certificate from Assessing officer who will estimate the capital gains in hands of seller.
TDS @1% will then be applicable on such capital gains
Harkanwar Singh Kamra
(Querist)
05 October 2017
As per section 194ia that's applicable on amount exceeding 50 lac here it's 16 lac
K Srinivas, CMA CS
(Expert)
05 October 2017
If seller fails to obtain such certificate from AO, then buyer is required to deduct 1% TDS on whole sales consideration
K Srinivas, CMA CS
(Expert)
05 October 2017
Pls note that even advance received by seller from buyer will also be subject to tds as above
K Srinivas, CMA CS
(Expert)
05 October 2017
As per section 194ia that's applicable on amount exceeding 50 lac here it's 16 lac
This is applicable only for resident sellers
This is applicable only for resident sellers
K Srinivas, CMA CS
(Expert)
05 October 2017
Sec 195 is for purchase of residential property from NRI and here it is clearly stated that TDS will be applicable even if consideration is less than Rs.50 lacs
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