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Tds on purchase of property from nri

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Shivish Verma

C A

236 Points Posted on 15 December 2017

Sir

My client is going to buy a property from NRI. The cost would be around Rs 80.00 Lacs. I understand that

-in this case 194IA is not applicable as seller is NRI

- Section 195 will be applicable and Tax will be @ Rate in force. i.e. 20 % if LTCG , slab rate if STCG

- Buyer has to obtain TAN and file 27Q as per Income Tax rules.

Please confirm if my understanding is correct.

Futher i have question that should seller obtain PAN or not. I mean is it mandatory for seller to obtain PAN.

because how will i file 27Q

Please Reply urgently

Thanks

Replies (1)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121528 Points Posted on 24 December 2017

-in this case 194IA is not applicable as seller is NRI .........CORRECT

- Section 195 will be applicable and Tax will be @ Rate in force. i.e. 20 % if LTCG , slab rate if STCG.......... 20% Plus Cess over agreed value with PAN, unless lower deduction of TDS certificate obtained from department.

- Buyer has to obtain TAN and file 27Q as per Income Tax rules. Please confirm if my understanding is correct. .......... CORRECT

Futher i have question that should seller obtain PAN or not. I mean is it mandatory for seller to obtain PAN. ........ YES.

Refer: tds-property-purchase-nri