hi ,
i have purchased a property from nri seller. i have deducted 20.8 percent. i am getting a notice for shart tds. income tax is computing as 31.2.
i am not able to understand why it is happening
TDS @ 20.8 is applicable if property held by the NRI is held for more than 2 years.
However, if the property has been held by the NRI for less than 2 years, 31.2% would be the rate of TDS which would be applicable.
Therefore, the tax officer is correct in sending this notice as 31.2% TDS is applicable in such a case.
CAclubindia
