TDS on Advance Paid Against Property to NRI

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Dear Experts.

MR.A (NRI) entered into transaction to sell his property to Mr.B (Resident Indian) for 55 Lacs.

Mr B has paid token amount Rs 5 Lacs to A.

MR A has Got certificate for lower deductions of TDS wherein the TDS Rate and amount 50 Lacs mentioned.

Now my question is what about the TDS on adavnce of 5 Lacs which is already paid to Mr.A By Mr.B

Weather he don't need to deduct any TDS??

Or

Weather the TDS is applicable as ler Rate mentioned in Lower Deductions Certificate??

Or

Weather Normal TDS rate of 20% is applicable on advance amount.??

Or is there any other solutions?

Kindly help with ur expert opinion.

 

Replies (8)
Log in to traces
register in traces , PAY THRU 26QB CHALLAN
form 16B
PROPERTY ABOVE 50 LACS 1%
THE ENTIRE AMOUNT
TDS applicable at 20.8% for 5 lakhs and remaining 50 lakhs at lower tds %.
Though it is sale property it is not covered by Section 194IA . Hence 26QB is irrelevant.

It is covered by Section 195. Payment to NRI.

So refer Section 195
Yes I hv mentioned a lower tds for a resident individual.
In case of nri the rates are obviously more.

Thanks alott every one for reply.

CA Raj Doshi sir, is there any solution to deduct lower TDS on 5 Lacs also??

Practically, I don't think it is possible. Still, you can ask the seller if he will be able to arrange a FRESH lower TDS for the balance 5 lakh value. 

26QB not applicable for this case

A lower tds certificate is not possible.

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