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Tds on short term capital gains of non resident

TDS 576 views 4 replies

SCENARIO :

NRI is selling an immovable property in India to Resident individual for more than 50 Lakhs.

Gains arising are STCG.

Please clarify as to at what rate should resident buyer deduct TDS.

Also clarify whether newly inserted sec.194IA shall be applicable in this case.

CA.Chetan Ranade

 

Replies (4)

TDS to be deducted on u/s 194LLA @ 1% if the amount exceeds 50 Lakhs

Is there such a section in present income tax act??

I guess 194 LAA, if that is what you are trying to say, has been withdrawn.

Please clarify.

With effect from 01-10-2012 194LAA clarifies that any payment on trnsfer of certain immovable property other than agri land TDS to be deducted @ 1% ( If 50Lakhs for urban agglomeration or 20lakhs for any other area )

Sir, 

w.e.f 01.06.2013 Sec. 194 IA is in effect.

This section specifies the same provision which you have stated.

Also, Sec. 194 IA specifies the word "Resident Transferor". hence, i m seeking clarification as to whether Resident is liable to deduct 1 % TDS when buying property from NRI (NRI Transferor).


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