Tds on property purchase

I am looking to buy a property from NRIs. Its a joint property. Now the husband has been a resident indian for tax purposes during the past 2 years. The wife however has been a non resident

I want to deduct TDS on the property but the husband claims that tds is not applicable on account of the following:

1. he is a primary holder of property and has been a resident for the past 3 years

2. the consideration is to be paid to him and his wife will not participate in the same

3. most money of the property has been paid by him

please advise

Replies (9)

TDS is not applicable here as the payment is made to a resident and also he is the primary holder of the property. Make sure that the entire payment is made to the husband as overseas payment will attract FEMA provisions

thanks for your response Ashwin.

But the challenge comes from the fact that the primary holder has a private practice both in india and abroad. he does some advisory work for US companies in India. Past is fine but how do we ensure that he is a tax resident for FY 2013. he may (not intentionally but due to some work requirements) spend more time away from india during FY2013

 

If he is           

  • Physically present in India for 182 days or more in a previous year OR

 

  • Physically present in India for 60 days or more in the previous year and 365 days or more during the 4 years preceding the previous year.,

he'll be resident for FY 2012-13

 

you just check in March whether any of the condition is satisfied or not.

 

Thanks... Just a few clarifications since am not a CA

March here...would it mean March 2013? But the deal has to happen in the next 2 months. So what undertaking or document should i take from him to ensure that he would be a resident for tax purposes during FY 2013?

Please find the attached file

Sorry that file was for sombody else.... Then plz Check wether he is india for atleast 60 days from 1st April,2012 to the date of Making Payment. If he is, he is resident Otherwise not

oh ok... cool thanks a lot.. that was helpful

But even if we are making payment to the assessee's bank account in India and relying on his declaration that he intends to be a resident in 2012-13 would be sufficient reason for us to not to dedcut tax.

 

We dont have to check for how many days he is  in India, his declaration is enough for us to beleive ( by way of affidavit)

Great...thanks Ashwin

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