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Tax on payment to non resident
I am planning to purchase a house property from a non resident , price rs. 60 lakhs. what the rate of tax to be deducted and the relevent section
Replies (5)
If Location of Property is India then Tax needs to be deducted
also refer DTAA between NR's country and India
other relevant sections 194IA, 195
Whether LTCG @ 20% is the applicable rate of tax
You are purchasing the said property, hence ltcg in your hands.
Sec 195 of the Income Tax Act governs the provision of Tax Deducted At Source that states that Tax is required to be deducted while making payment of sales consideration when an indian is purchasing property in India from NRI. He is liable to deduct TDS @ 20% in case the property is being sold by NRI within 2 years of acquisition and @ 30% if property is being sold by NRI after 2 years. As the sale consideration is 60 lakhs, Surcharge of 10% and HEC @ 4% .
@ Vikas Vaishley
How LTCG is taxable in Purchasers hand ?
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