Hello,
Assessee purchased property from NRI with below details:
Agreement Date: 31/03/2021
Registration date: 16/04/2021
Advance Payment of Rs.2 Lacs: 01/03/2021
Balance Payment: Yet to be released
Question: TDS u/s 195 to be deducted in which Financial Year & on what amount?
As the agreement has been entered into the TDS needs to be deducted on 31.03.2021 on the full value of consideration.
Thanks for the quick reply. I have one more question, the said transaction will be reported in AIR by IGR in FY 2020-21 or FY 2021-22 since the agreement is registered in FY 2021-22
I think it will be the registered year that is FY 21-22. Also you have to claim the capital gain or loss in FY 21-22
So basically if the seller has to apply for lower deduction, it has to be for FY 2020-21 or FY 2021-22?
When the Agreement is registered in April 2021 then it will fall in FY 21-22.also in income tax under the AIR transaction it will appear in FY 21-22 so to avoid unnecessary litigation advisable to offer gain in FY 21-22. Further Seller won't be able to apply for Lower TDS for FY 20-21 as the year is already over.
CAclubindia
