I bought a property in 2013 for 2.2crores. Now, the real estate prices have crashed and I am selling in the financial year 2021-2022 at 1.7crores which is at a loss of 50lacs before applying indexation.
Buyer wants to deduct a TDS of 23%. His CA has advised him that for the financial year 2021-2022, I have not been staying in India for more than 182 days and hence I should be treated as an NRI.
However, my Chartered Accountant is saying that the Section 6 of Income Tax act defines Residential Status based on the number of days of stay in India in the previous Financial Year.
In the year 2020-2021, I was staying in India for 350 days and I filed by IT returns in December 2021 as Resident.
Based on the number of days of stay in India in Financial Year 2020-21, my Auditor says only 1% of TDS needs to be deducted by the Buyer.
Please can you share your views on what should be the right TDS deducted in my case?
CAclubindia
