sec 195

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CA Dipak (Querist)

25 July 2011 Mr a,b,c,d having land in india.they held same jointly since 1975.Mr.b,c,d are non resident indian while a is a resident in india.

now they want to sell the same land to indian partnership firm.As per sec :195 payment made to non resident required tds deduction.hence, partnership firm required to deduct the tax from payment made to b,c,d.

sale consideration of land Rs. 3.00 crs(yr 2010-11)
purchase in 1975 so, fmv on 1..4.81 is 0.45 crs.

1) tds required when payment made on above transaction or not?

2) if yes then at which rate?
3) how to decide on what amount tds required to be deducted. is provision of sec:195(2) applied in this case and amount will decide by ITO ?
4)how to compute capital gain and tds?indexation applied in this case?

URGENT

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

26 July 2011 As I know, no TDS is required to be deducted by the firm purchasing the land,
in respect of the NRI vendors.

Indexation will apply and gains will be calculated in the same manner as applicable to Mr. a.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

26 July 2011 Please refer 2nd Proviso to Section 48.
Also go through Proviso 1 and 3 of S 48.

CA Dipak

CA Dipak (Querist)

26 July 2011 thank you sir.

bt sir still i have doubt in this matter.
should nri file ROI income in india.and why sec.195 not applied as it is payment to non resident india.

wait for your valuable reply..

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