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Sec 54 and TDS on sale of property

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Mumbai8

Other

29 Points Posted on 04 November 2024

I am holding the Letter of Adminstration ( LOA) of my deceased parents. I am in the process to selling my parents flat. The proceeds will be distributed to my sibling and me. My other siblings are Resident Indians. The sales price is more than Rs. 50L

Question:

Since I am LOA holder, and will be executing the sale, would the TDS be witheld at the NRI rate on the entire amount? or would the TDS be witheld based on each of the legal heirs resident status rate?
We all plan to invest the proceeds under Sec 54, and will be investing the proceeds in Sec 54EC bonds, so can we file Form 13 so that "no TDS" is witheld at the time of sale.

Thank you in advance.

Replies (3)

Quick Summary

This discussion addresses Tax Deducted at Source (TDS) when selling inherited property under Section 54. The user, holding Letters of Administration (LOA) for their deceased parents' flat, seeks clarification on whether TDS will be withheld at the NRI rate on the entire sale amount or based on the resident status of each legal heir. They are also inquiring about filing Form 13 for 'no TDS' deduction, especially if they plan to reinvest proceeds under Section 54 or 54EC.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121521 Points Posted on 04 November 2024

File form 13 for NO or Lower TDS deduction first then proceed.

Mumbai8

Other

29 Points Posted on 05 November 2024

Thank you

If I do not file form 13, Since I am LOA holder, and will be executing the sale, would the TDS be witheld at the NRI rate on the entire amount? or would the TDS be witheld based on each of the legal heirs resident status rate?