02 December 2013
Dear All, I have a query regarding TDS on Sale/Purchase of Immovable Property. I have a NRI Client who sold his property to a Resident Individual @ Rs 49 Lakh on October 2013 in urban area property is developed by a developer of property. But The Resident Individual is not deducted any TDS on amount paid by him to NRI. So in this i want to know whether TDS is required to deduct or not by resident Individual on Payment made to NRI. Please briefly Explain me the details provision of TDS On Sale/Buy of Immovable Property.
02 December 2013
Resident individual is required to deduct the TDS u/s 195 of the Income Tax Act 1961 after considering beneficial provisions as provided u/s 90 of the income tax act 1961. in your case resident individual has not deducted the tds so you need to not worry at all. you need to ensure that value adopted while IT returns is greater of agreement value or 50C value whichever is higher.
If resident individual subsequently realises his mistakes and pays tds u/s 195 and issues certificates to your NRI client then you can reimburse him the same considering facts of the situation.
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