Tds on payment to NRI on sale of property
This query is : Resolved
17 September 2024
assessee has purchased a property from NRI of 6 cr & deducts a tds @ 23.92% I. e. Rs. 14352000. however Cpc calculates a tds of Rs. 15600000 & sends the assessee a short deduction notice of Rs. 12.48 lacs.
Assessee write a mail to tds cpc. where they replied that nature of remittance mentioned in statement is not covered under DTAA hence short deduction default has been raised. you are requested to pay the demand.
Is this reply correct?
we have deducted a tds as per income tax Act & not as per DTAA.
please reply
Assessee write a mail to tds cpc. where they replied that nature of remittance mentioned in statement is not covered under DTAA hence short deduction default has been raised. you are requested to pay the demand.
Is this reply correct?
we have deducted a tds as per income tax Act & not as per DTAA.
please reply
17 September 2024
TDS u/s 195 is applicable.
18 September 2024
TDS applicable on total sales value not on capital gains in case of NRI.
18 September 2024
Yes sir. We have also deducted on total sales 20% tax surcharge 15% & cess 4%. Dept calculated it's short deduction. Dept. calculated at 26%. This may be as 20% tax 25% surcharge & 4% cess effective rate is 26%. But in case capital gain maximum surcharge is capped at 15% only. 25% surcharge is for other than capital gain income.
18 September 2024
You are right. Reply to the notice.
18 September 2024
It is also suggested to prefer an appeal before CIT(A) and filing an application u/s 154 for rectification of mistake u/s 154.
18 September 2024
TDS is very much charged on the sales consideration not on capital gains but surcharge is based on total income which you can reply for the notice purpose. that is why asked for capital gains. Kindly respond to the notice quoting the actual facts.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- ITC temporary reversal and reclaim
- TDS U/S. 194NF
- GST on export of services and Input Credit
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- Inventory of finished goods
- Applicable TDS rate for sale of property in Nov 2024
- Import license renewal
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding einvoice taken on nil rated sales
- Strategical investment in Public listed company
Trending Online Classes
CAclubindia
