FACTS
MR A PURCHSED THE RESIDENTIAL HOUSE FROM NON RESIDENT MR B FOR AN AMOUNT OF RS 1 CR. HE HAS NOT DEDUCTED ANY TDS WHILE MAKING PAYMENT TO MR B. THE SAME HOUSE PURCHASED BY MR B FOR A CONSIDERATION OF RS 60 LACS.
QUESTION
1- WHAT WILL BE THE TAX LIABILITY OF MR A.
2- CAN A.O. IMPOSE TAX ON RS 100 CR OR AN AMOUNT CAME AFTER DEDUCTING COST OF ACQUISITION I.E. ON PROFIT OF RS 40 LACS.
Tackling capital gains is one part.
But you will also have to deduct tax as well at 20% or 30% as applicable u/s 195.
Otherwise exemption certificate from the income tax department has to be obtained u/s 195(2).
Who can obtain exemption certificate from income tax officer
Abic and Mani Chartered Accountants
Kottayam
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