Dear Experts,
I am filing Form 27Q (144 under New IT Act) for the purchase of an immovable property from an NRI under the Income-tax Act, 2025.
In this case, TDS has been deducted at 12.5% on the long-term capital gains.
The TDS utility provides multiple Nature of Payment options for Long-Term Capital Gains, such as:
- LTCG u/s 197(1) [112]
- LTCG u/s 197(4) [112(1)(c)(iii)]
- LTCG u/s 198 [112A]
- LTCG u/s 214 Sl. No. 1 (115E)
- LTCG u/s 214 Sl. No. 2 (115E)
My query is:
For Long-Term Capital Gain arising on the sale of immovable property (land) by an NRI, where no lower deduction certificate under Section 197 has been obtained, which Nature of Payment code should be selected in Form 27Q(144)?
If possible, kindly explain the scope of each of the above codes and clarify which one is specifically applicable to the sale of immovable property by an NRI.
Your guidance with the relevant statutory provisions or CBDT instructions would be greatly appreciated.
Thank you.
CAclubindia
