if a person is PRI in India and he purchase an asset in India which belongs to a NR and he makes payment in Foreign currency
which type of transaction it is whether capital or current account?
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FEMA transactions query
Replies (3)
Under which section TDS was deducted?
I may be missing something here but it is possible to pay in foreign currency for purchase of property located in India? As I understand, it may not be possible.
No My Dear....
You are not missing anything....
You are 100% correct....
To confirm your comment... I would add that the proceeds cannot be credited to NRE account also....
As per FEMA act, even banks will not accept the payment transaction without RBI permission or without certificate of a practicing Chartered Accountant, which as per act, no one will issue.
To add to it, as per IT act... the purchaser needs to deduct TDS from the sale proceeds as per sec. 195 of the act. Without which registration of the deed is not possible...
Finally to conclude... the query is on fictitious ground, practically not possible...
Good Luck ....
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