TDS under section 195
This query is : Resolved
25 May 2011
My query is regarding the purchase of a residential property from an NRI.
(Property located in India)
Is tax u/s 195 deductible on the gross payment to the seller or is it on the amount of Capital Gains arising on such sale?
Eg. If the sale consideration is Rs.50 lakh and the cost to the seller was Rs.45 lakhs, TDS is to be deducted on Rs.50 lakh or Rs.5 lakh? And at what rate?
(Property located in India)
Is tax u/s 195 deductible on the gross payment to the seller or is it on the amount of Capital Gains arising on such sale?
Eg. If the sale consideration is Rs.50 lakh and the cost to the seller was Rs.45 lakhs, TDS is to be deducted on Rs.50 lakh or Rs.5 lakh? And at what rate?
25 May 2011
TDS has to be deducted on 5 lakhs , but the buyer should have adequate proof for the cost of 45 lakhs.
Rate is 20% plus surcharge and cess in case of Long term capital gain.
Rate is 20% plus surcharge and cess in case of Long term capital gain.
Message likes :
1 times
26 May 2011
you need to also check out the applicability of DTAA.
27 May 2011
DTAA shall have no role in taxation of capital gains.Capital gains are taxable in the country in which they arise.
28 May 2011
capital gain tax will be chargable on 5 lakhs. rate will be be depend on long term or short term capital basis.
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?
- ITC temporary reversal and reclaim
- Applicable TDS rate for sale of property in Nov 2024
- Inventory of finished goods
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- Tds on building rent monthly
- Clarification on Documentation of Paid-Up Capital Contribution by Directors
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- RCM INVOICING FROM NOV-2024
- Confusion around Form 26QB fields
- REGARDING ACCOUNTING CODE FOR SERVICE TAX PAYMENT
- Redevolpment of bldg in mumbai
- Refund of AY 22-23
- 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?
Trending Online Classes
CAclubindia
