can firm get lower deduction certifiate for TDS?

This query is : Open

Report Abuse Follow Query Ask a Query

CA Sagar Khanpara

CA Sagar Khanpara (Querist)
Follow

21 March 2010 can firm get lower deduction certifiate for TDS?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
Follow

21 March 2010 yes. can be get with applying through form 13

Rajeev

Rajeev (Expert)
Follow

18 April 2010 Dear Sirs ,

I want to apply for a Nil rate of TDS certificate u/s 197 for a NRI who is entering in a property sale deal . Regarding this , the sale consideration is of 2 crores , TDS @ 20.6% ( on sale consideration ) is held in escrow a/c by the lawyers , i.e Rs 40.6 lakhs.

Now the issue is out of 2 crores , My client will claim an exemption of 1.5 crores u/s 54 (which also includes the cost of acquisition of the sold property) The balance 50 lakhs will go in bonds u/s 54EC .

But the bond money will only go when the lawyers release the funds from the escrow a/c(cos the client has only received 1.6 crores , balance is in escrow). The money will only be released when we will provide a certificate u/s 197 .

How will the AO issue me a certificate without me providing a receipt u/s 54EC .

Can i provide an undertaking for the same ? my client is not in a position to deposit additional 50 Lakhs in 54EC from his own pocket.

Also i would like to know the set of documents required in this kind of a case to be submitted along with the application of 197 .

Thanks in advance

Upgrade to CAclubindia Pro. Subscribe Now!