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TDS return on NRI property

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Varun

Proressional

47 Points Posted on 24 September 2021

I bought an immovable property from an NRI seller for consideration more than 50 lacs. TDS @ 22.88% was deducted and deposited on 25-March-2021. Sale deed was signed and executed registrar's office on 29-March-2021. However, due to second wave of covid pandemic, there was some administrative delay in registering the property. Finally, registration was done on 11-May-2021. Index-2 copy shows sale deed sign date as 29-March-2021 and registration date as 11-May-2021. My questions are:

1. TDS was deducted and deposited in FY 2020-21. Property registration completed in FY 2021-22. So under which assessment year, should TDS return be filed?
2. For TDS return filing, what date is taken into consideration? The date on which sale deed was executed or the date on which the registration was completed by the registrar?

Replies (2)

Quick Summary

This discussion addresses a common query regarding TDS on NRI property purchases. The user deducted and deposited TDS in FY 2020-21 for a property bought from an NRI, but the registration was completed in FY 2021-22 due to pandemic delays. The key questions revolve around which financial year the TDS return should be filed under and whether the sale deed execution date or the registration date is considered for this purpose. The provided answer clarifies that the TDS return should be filed for FY 2020-21, using the sale deed execution date as the determining factor, even if registration occurred later.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

212444 Points Posted on 24 September 2021

1. Q4; FY 2020-21.

2. Date Executed.

kanagarajan subramaniam

B.Com

23 Points Posted on 24 September 2021

Since the seller has executed the saledeed in 2020-21 (Q4 FY2020-21) and TDS also deposited, even though the formal registration was completed in May '21, capital gain tax return is for FY 2020-21 only.