Tds on payment to NRI on sale of property

This query is : Resolved

Krishna (Querist)
Follow

17 September 2024 assessee has purchased a property from NRI of 6 cr & deducts a tds @ 23.92% I. e. Rs. 14352000. however Cpc calculates a tds of Rs. 15600000 & sends the assessee a short deduction notice of Rs. 12.48 lacs.
Assessee write a mail to tds cpc. where they replied that nature of remittance mentioned in statement is not covered under DTAA hence short deduction default has been raised. you are requested to pay the demand.
Is this reply correct?
we have deducted a tds as per income tax Act & not as per DTAA.
please reply

PARAS CHHAJED

PARAS CHHAJED (Expert)
Follow

17 September 2024 TDS u/s 195 is applicable.

Krishna

Krishna (Querist)
Follow

17 September 2024 Tds us 195 is 23.92% only no ?

Sowmya.G

Sowmya.G (Expert)
Follow

18 September 2024 What is the capital gain?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

18 September 2024 TDS applicable on total sales value not on capital gains in case of NRI.

Krishna

Krishna (Querist)
Follow

18 September 2024 Yes sir. We have also deducted on total sales 20% tax surcharge 15% & cess 4%. Dept calculated it's short deduction. Dept. calculated at 26%. This may be as 20% tax 25% surcharge & 4% cess effective rate is 26%. But in case capital gain maximum surcharge is capped at 15% only. 25% surcharge is for other than capital gain income.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

18 September 2024 You are right. Reply to the notice.

PARAS CHHAJED

PARAS CHHAJED (Expert)
Follow

18 September 2024 It is also suggested to prefer an appeal before CIT(A) and filing an application u/s 154 for rectification of mistake u/s 154.

Sowmya.G

Sowmya.G (Expert)
Follow

18 September 2024 TDS is very much charged on the sales consideration not on capital gains but surcharge is based on total income which you can reply for the notice purpose. that is why asked for capital gains. Kindly respond to the notice quoting the actual facts.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

G.E.Sudarsan

Sivashankary Sivaramakrishnan

Vignesh Pai

arun luharuka

Chnmaya parhi

Subscribe Now

Tds on payment to NRI on sale of property

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA