Determination of Residential status for sale of residential flat
This query is : Resolved
26 April 2021
A person Indian Citizen having PAN. First time went out of India on 02/12/2020 on employment visa. He is selling his residential flat located in India on 05/05/2021 for Rs.1.25 cr which was purchased in 2015 for Rs.1.30 cr (LTCG is NIL) out of his taxable income earned in India and bank finance. Buyer want to deduct TDS u/s 195 @23.92% instead of 1% u/s sec 194IA. saying that a person is employed in foreign country on employment visa. Will he get nil deduction certificate u/s 195(3) or lower deduction u/s 197 .Question is that a person's status is R&OR or R&NOR or NR as on date of sales of residential flat . He has filed all his Income tax return till assessment year 2020-21 in India. Question to determine is that he is still R&OR (stay182 days or more in foreign country , previous 10 years in India, more than 729 days in India in preceding 7 Years, more than 365 days in India preceding four years in India F.Y 2017-18 to 2020-21). Which section to apply for tds 194IA or 195 ,Please comment.
27 April 2021
As on the date of sale he is not a NRI. So deduct 1% TDS.
27 April 2021
1. He is R in FY 2020-21 since he clearly stayed more than 180 days in India.
2. for FY 2021-22 - not possible to determine his residential status as of now.
3. Cannot be considered as NR just because he is employed outside India
4. basis all above points, he needs to be considered R as on date and hence 1% TDS to be deducted.
hope this helps
2. for FY 2021-22 - not possible to determine his residential status as of now.
3. Cannot be considered as NR just because he is employed outside India
4. basis all above points, he needs to be considered R as on date and hence 1% TDS to be deducted.
hope this helps
27 April 2021
Sir, thank you very much
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?
- REGARDING GST ON COMMERICIAL PROPERTY
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- GST on export of services and Input Credit
- ITC temporary reversal and reclaim
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- TDS U/S. 194NF
- Applicable TDS rate for sale of property in Nov 2024
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Payment of bonus act - notice pay recovery
- MIS MATCH OF INVOICE NUMBER
- GST Regis.
- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
Trending Online Classes
CAclubindia
