Tds under section 195

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 November 2018 NRI is in the process of sale of his Immovable Property in India. Tax at Source is being deducted under section 195. However, the tax Payable on Long Term Capital Gains worked is much less than the TDS Rate of 22.66% or 23.69 %. How to apply to AO for lower deduction of TDS?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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15 November 2018 No fixed rate of TDS applicable on sale of property. Work out the actual tax payable on long term capital gains and deduct that amount as TDS no need to go to AO if the working is right.

Querist : Anonymous

Querist : Anonymous (Querist)

15 November 2018 Buyer has to deduct Tax under section 195 in a case where the seller is a Non Resident. Please review your reply.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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15 November 2018 Yes you are right, obtain working and deduct only actual tax payable.
If you have doubt contact directly with working to jurisdiction AO.

Querist : Anonymous

Querist : Anonymous (Querist)

15 November 2018 My query is related to Form 15D whereby an assessee may apply to AO for NIL deduction of TDS under Section 195(3). Whether the application may also be applied for lower deduction of TDS?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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15 November 2018 Section 195(2) applicable.