28 November 2012
Hi, Assessee is purchasing a flat from NRI i.e. Resident of Dubai, UAE. Sale consideration for the flat of NRI is Rs. 3,60,00,000/-, which were purchased on 12 March, 2008 for Rs. 2,32,28,060/-. how to calculate the amount of TDS to be deducted by the assessee after considerating capital gain on the above. & what is the procedure for issuing Form 15CA & Form 15CB. I'm looking for calculation part. I have already read Section 195.
29 November 2012
Assessee need to deduct TDS @ 20% on Sale price.Please note that benefit of Threshold Exemption Limit is not available to NRI. As per provisions of Section 195(2) if still there is any doubt, with regard to appropriate proportion of such sum so chargeable to tax in the mind of the person making the payment of such sum to a non resident then such person may make an application to the Assessing Officer to determine by general or special order to determine the appropriate proportion with regard to tax deducted at source. The application can also be made under section 195(3) read with section 197 to the assessing officer by the recipient (payee) requesting the officer to issue necessary directions in this regard.
CAclubindia
