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Can nri sell his house property with out tds u/s 195

234 views 1 replies

sasi dass

Audit Asst

51 Points Posted on 04 June 2016

My Friend is NRI and he have house property in Chennai and Decided to sell his property in coming months . Now, he has doubft about TDS deduction of 20% and cess. Is it applicable for TDS for sale of propery to resident & Is it applicable on sale Value or capital gain and also is any possible way to reduce the rate of TDS becasue of capital gain tax is less than the Amount of TDS Deduction.

Note : He is not file IT Return last Five years

Summary of the above transaction

1.Sale Consideration on june 2016 Rs.85 lakhs

2.Purchase value on july 2011 Rs.55 lakhs

3.Long term Capital gain tax (based on Index cost for the year 2015-16) 1.91 lakhs

4.TDS on Sale Value is Rs.17 lakhs

Replies (1)

pooja

nothing

47 Points Posted on 08 June 2016

Hi,

In said case, buyer of the property is required to file an application to the concerned assessing officer to determine the value of capital gain and deduct TDS as per assessing officer order. Only through this way, seller can optimize his TDS deduction on sale of immovable property i.e. TDS deduction of capital gain instead of total consideration.

In the absence of the above, tds would be deducted on the total consideration i.e. 85 lakh.