Tds u/s 195
This query is : Resolved
23 December 2012
Sir,
If D (i.e.developers of site or builedrs) enters into a development agreement with NR(i.e.NON RESISIDENT,resides in USA).D agreed to construct a building in the site of NR and the owner agreed to give 50% share in the building to be constructed.Can DEPT give notice for not deducting TDS u/s 195?.Please give details.
If D (i.e.developers of site or builedrs) enters into a development agreement with NR(i.e.NON RESISIDENT,resides in USA).D agreed to construct a building in the site of NR and the owner agreed to give 50% share in the building to be constructed.Can DEPT give notice for not deducting TDS u/s 195?.Please give details.
K.M.CHANDRAN
(Expert)
25 December 2012
Subject the income in the hands of the recepient to following test:A)Whether income is received (or
deemed to be received) in India
during the relevant year
B)Whether income accrues (or
arises or is deemed to accrue or
arise) in India during the
relevant year
If Status of the
income in A& B above are Yes then it is: Indian income
Condition(A) is Yes but condition (B) is No then also it is Indian income
Condition(A) is No but condition(B) above is Yes then also it is Indian income
If answer to both the above conditions are No then only it is Foreign income
come.
TDS IS DEDUCTIBLE FOR ALL INDIAN INCOME AT PRESCRIBED RATES FOR ALL ASSESSEES(RESIDENT,NON-RESIDENT AND NOT ORDINARILY RESIDENT).
SO, IN YOUR CASE TDS HAS TO BE DEDUCTED ON EVERY REMITTANCE.
deemed to be received) in India
during the relevant year
B)Whether income accrues (or
arises or is deemed to accrue or
arise) in India during the
relevant year
If Status of the
income in A& B above are Yes then it is: Indian income
Condition(A) is Yes but condition (B) is No then also it is Indian income
Condition(A) is No but condition(B) above is Yes then also it is Indian income
If answer to both the above conditions are No then only it is Foreign income
come.
TDS IS DEDUCTIBLE FOR ALL INDIAN INCOME AT PRESCRIBED RATES FOR ALL ASSESSEES(RESIDENT,NON-RESIDENT AND NOT ORDINARILY RESIDENT).
SO, IN YOUR CASE TDS HAS TO BE DEDUCTED ON EVERY REMITTANCE.
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