Tds

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 November 2013 ONE OF MY CLIENT( INDIVIDUAL) SOLD A PROPERTY IN F.Y 10-11 AND PAID A PART OF SUM TO HIS BROTHER AS THE PROPERTY WAS ANCESTRAL.MY CLIENT WAS NOT IN GOOD RELATION /TALKS WITH HIS BROTHER SINCE LONG TIME.
LATER ON MY CLIENT CAME TO KNOW THAT HIS BROTHER RESIDENTIAL STATUS WAS NRI .

SO NOW AS HE DIDNT DEDUCTED TDS ON THAT PAYMENT U/S 195/- AND THE CASE IS UNDER ASSESSEMENT WHAT REMEDY IS AVAILABLE TO HIM.
PLS GUIDE WITH ANY CASE LAW/DECISION IF ANY.
THANKS IN ADVANCE

Nikhil Kaushik

Nikhil Kaushik (Expert)
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10 November 2013 the liability to deduct TDS was of the buyer and not of the resident brother. So, I am wondering how is your client being covered under this scrutiny?

Querist : Anonymous

Querist : Anonymous (Querist)

11 November 2013 IT IS CASE OF F.Y 2010-11 .SO PLS ADVICE ACCORING TO THAT

Nikhil Kaushik

Nikhil Kaushik (Expert)
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11 November 2013 Dear friend, irrespective of the year, in case of a sale by a non-resident, the liability to deduct TDS shall be of the buyer. Just because you received the money on behalf of your brother, doesnt make you the payer in respect to that income.

Querist : Anonymous

Querist : Anonymous (Querist)

11 November 2013 NIKHIL JI PROPERTY HAS BEEN SOLD BY A RESIDENT ASSESSEE AND PAYMENT MADE TO BROTHER WHO IS NON RESIDENT.
SO WHETHER TDS LIABILITY ARISES U/S 195

Nikhil Kaushik

Nikhil Kaushik (Expert)
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11 November 2013 the property was in the name of the resident brother or his ancestors?

Assuming that it was in the name of the resident brother, then the capital gains tax liability shall be in the hand of resident brother and the transfer to non-resident brother won't be taxable.

However, if the property was in joint name, then 195 will get triggered.

Querist : Anonymous

Querist : Anonymous (Querist)

11 November 2013 THE PROPERTY WAS ANCESTRAL AND WAS SOLD BY RESIDENT BROTHER AND THE AMOUNT WAS GIVEN TO NON RESIDENT BROTHER AS A SHARE

Nikhil Kaushik

Nikhil Kaushik (Expert)
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11 November 2013 well, if the sale deed has been signed only by the resident brother as sole heir of the property, then you can avoid 195. Just pay capital gains tax out of your own pocket and transfer non-resident brother's share as gift.

Querist : Anonymous

Querist : Anonymous (Querist)

11 November 2013 THANKS FOR ADVICE NIKHIL JI

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