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NRI CAPITAL GAIN
If a assessee who is indian resident at the time of purchasing property but at the time of sales of property assesse status changed to NRI and assesse will reinvest the sales consideration amount received in NRO account in further purchase of property in Indian only. As TDS has to be deducted by the seller @ 20% considering assesse is NRI, but is there any clause in Income Tax act that giving letter to Income Tax authority that the sales consideration will be reinvested in India only , so as to allow deduction of 1% TDS as applicable for Normal Indian Resident.
Replies (1)
You file Form 13 to AO
Lower deduction/No Deduction U/S 197 is the certificate given by the deductee to the deductor for reduction of TDS on the payment to be done.
This certificate is obtained by the deductee form the Income Tax Assessing officer on providing relevant information of income.
Procedure for Making the Application Under Section 197
An application for nil/lower deduction of TDS using the FORM 13 is required to be filed with the Assessing Officer(TDS) for seeking permission. Such Form 13 can be filed either online or manually. Regions of Mumbai, Tamil Nadu have enabled online filing of Form 13 for faster processing of applications for issue of certificates of lower/nil deduction of tax at source u/s 197(1) of Income Tax Act 1961
Suggested that the tax payers file complete and correct details required for processing the application in the first instance.
If the application satisfies the AO, he would process the issue of the certificate;
The copy of this certificate can be attached to the invoice given to the deductor, and he can use this to justify the lower tax deduction
Lower deduction/No Deduction U/S 197 is the certificate given by the deductee to the deductor for reduction of TDS on the payment to be done.
This certificate is obtained by the deductee form the Income Tax Assessing officer on providing relevant information of income.
Procedure for Making the Application Under Section 197
An application for nil/lower deduction of TDS using the FORM 13 is required to be filed with the Assessing Officer(TDS) for seeking permission. Such Form 13 can be filed either online or manually. Regions of Mumbai, Tamil Nadu have enabled online filing of Form 13 for faster processing of applications for issue of certificates of lower/nil deduction of tax at source u/s 197(1) of Income Tax Act 1961
Suggested that the tax payers file complete and correct details required for processing the application in the first instance.
If the application satisfies the AO, he would process the issue of the certificate;
The copy of this certificate can be attached to the invoice given to the deductor, and he can use this to justify the lower tax deduction
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