Certificate for lower/nil tds deduction - section 197 - nri

Dear Forum Members

I am an NRI and selling a property in India that I had purchased in 2006 to a resident Indian and the transaction will happen in Nov 2014 for registration. I have been adviced by the accountant that due to NRI transaction TDS has to be deducted at 20% of total sale consideration. I would request expert advice here :

1. Is the TDS deduction on 20% of sale consideration or on capital gains amount.

2. I have purchased a flat in India that will be registered in 2015, I have been paying construction installments on this flat since 2011 and will get posession only in 2015, can this be considered as the one-year timeframe to get capital gains deduction.

3. Since I will have capital gains deduction, I want to get a certificate from AO for lower TDS rate, what are the documents required for this ?  My account is asking me for all this, are all these documents really required ?

1.     Copy of sale deed (purchased by you) 

2.     Agreement to sell (original) 

3.     Bank statement for last 6 months

4.     Copy of sellers PAN card

5.     Copy of the buyers PAN card

6.     Copy of the buyers TAN 

7.     Bank guarantee for the difference tax 

Is bank guarantee required for filing Form No 13 ?

The accountant is also asking for proof of source of funds to purchase the site.

Please help.

 

 

Replies (1)

Click below article which may help you

How to obtain TDS exemption certificate from Income Tax officer in case of purchase of property from NRI

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