Rupal (MBA) (27 Points)
23 May 2014Dear sir,
i am in the process of purchasing a property from an NRI, but I am confused as to what is the rate at which the tds is to be deducted?
further, tds needs to be deducted at every payment or on the deal amount.
please solve this query of mine
Ankit
(CA, CS)
(3064 Points)
Replied 23 May 2014
Dear Rupal,
Incase of an NRI, the deduction of TDS is to be made under section 195 and not 194IA of the income tax act, 1961.
Mihir
(Wealth Manager)
(5293 Points)
Replied 23 May 2014
Ankit
(CA, CS)
(3064 Points)
Replied 23 May 2014
yes.... at the most, the NRI can apply to the ITO for a certificate for non deduction of tax on the payments made
Rupal
(MBA)
(27 Points)
Replied 23 May 2014
Ankit
(CA, CS)
(3064 Points)
Replied 23 May 2014
praveen
(Chartered Accountant)
(6971 Points)
Replied 23 May 2014
You need to obtain a TAN.
Deduct and then remit to the government. Rate of tax will be 20% + Surcharge (if applicable) + Cess
The NRI can approach the department to get a certificate for lesser deduction.
In case he gets a certificate, based on the same you can deduct.
Sanjay
(Service)
(81 Points)
Replied 01 June 2014
| Originally posted by : Ankit | ||
 |
Dear Rupal, Incase of an NRI, the deduction of TDS is to be made under section 195 and not 194IA of the income tax act, 1961. Selling of immovable property by a Non Resident Indian is taxable under the income tax under Chapter XIIA of the Income Tax Act, more specifically under section 115E of the Income Tax Act 1961. The rate of tax prescribed and in force is twenty per cent. |
 |
Dear Ankit
Who will deduct TDS @ 20% as mentioned by you, buyer (from the payment made to seller) or seller itself (in this case NRI).
Is this TDS @ 20% same as Capital gains or Capital Gains will be deducted additionally.
CAclubindia
