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Land purchase from NRI

anshul tiwari (Student CA IPC / IPCC) (261 Points)

07 December 2019

If some one want to purchase land from NRI which is situated in india then who is liable for tax deduction and is buyer required TAN number for deduction

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4 Replies

Vijay C Nasa (Article) (32 Points)
Replied 07 December 2019

TDS should deducted by Buyer and Buyer is required to get TAN Number for Deduction.

Kapadia Pravin (17249 Points)
Replied 07 December 2019

Always payer that is buyer is liable to deduct TDS.

Yes when TDS is on Non-resident, buyer ought to have TAN Number

CA Arun Tiwari (Partner) (4230 Points)
Replied 09 December 2019

In Such case Section 195 will attract and irrespective of the value of Land Buyer is liable to deduct TDS. And Yes, Buyer is also need a TAN and must deduct TDS at the time of payment of sale consideration. If the buyer does not have a TAN, he must get it from the Income Tax Department as it is a necessary condition to deduct Tax especially in cases where the seller is a Non Resident.

Navratan Swami (Laxminiwas and Jain Chartered Accountants) (143 Points)
Replied 10 December 2019

If you are making payment for anything to NRI you have to see the TDS compliances.

Further as per Section 195 TDS should be deducted for any payment.

** It is responsibility of Buyer to Deduct TDS on Payment to NRI**

Further If NRI does not want to get the TDS deducted the you can advise him to get NO DEDUCTION CERTIFICATE/LOWER DEDUCTION CERTIFICATE from Income Tax Department.

Hence It can be said that the TDS would be applicable on Payment made for Land purchased from NRI.

For any other queries you can contact us.

Regards

Navratan Swami

+91-9892228804