An immovable property was purchased by a resident individual from a person who is NRI. The property is situated in India. My doubt is whether TDS u/s 195 is to be deducted on the sale consideration to the payee or the TDS is to be deducted on the LTCG portion only.
Unless 'Lower deduction of Tax' certificate u.s/ 197 IT act is obtained from his Jurisdictional ITO, TDS is required to be deducted on total sale consideration (u/s. 195 IT act)
As far as my interpretation is concerned, thew TDS u/s 195 should be deducted only on the Income portion. So LTCG amount should be amount on which TDS should be deducted.