Tds u/s 195

This query is : Resolved

Kamlesh Shyamlal Khanwani (Querist)
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30 November 2012 Sir(s),

My query is that if a banker sanctions a housing loan to a resident individual, who is purchasing house property from a NRI, then is the banker disbursing housing loan, liable to deduct TDS on the payments made by the banker to the NRI u/s 195 of the Income Tax Act??????

Arihanth Jain

Arihanth Jain (Expert)
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03 December 2012 My Views:

The sum received by the R is a loan whereas the same for the NRI is the sale consideration for the property.

As a result the sum received by the R is not liable to TDS being not an income item at all. However money is received by the NRI (thou sent by Bank/R) is income from sale of property and capital gains tax needs to be deducted accordingly.

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Kamlesh Shyamlal Khanwani

Kamlesh Shyamlal Khanwani (Querist)
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12 February 2013 Thanks a ton for the reply sirji...but please let me know who shall deduct the TDS is it the banker or is it the Resident who is purchasing the property...

Also if the Resident is a salaried person not at all liable as a Deductor for TDS then????

Please clarify...

Thanks & Regards

Arihanth Jain

Arihanth Jain (Expert)
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18 February 2013 It is the payer in general liable to deduct TDS. It shall be covered as part of form 15cb/ca compliance from a CA.

R' being a salaried employee is irrelevant in this transaction.

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