How to calculate tds for nri

This query is : Resolved

Lucky (Querist)
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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.

C.A.laxmikant Saini

C.A.laxmikant Saini (Expert)
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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.

Regards
CA. Laxmikant Saini

CA. Anuj Gupta

CA. Anuj Gupta (Expert)
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01 December 2012 TDS is required to be deducted on the income element in the money being paid to NRI.

In the present case if the CORRECT documentary proof regarding the :-
1. Date of Purchase
2. Cost of Purchase

are available , then the assessee can take a call to deduct TDS on the income part.

My suggestion in the present situation would be to go to ITO for obtaining certificate for correct deduction of Tax at Source.

Anuj
femaquery@gmail.com

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Lucky

Lucky (Querist)
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21 December 2012 What is the procedure for obtaining the above certificate from the ITO?
can I get A draft letter for the above matter.

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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28 July 2024 **Procedure for Obtaining Form 15CA & Form 15CB**

Form 15CA and Form 15CB are required for making remittances outside India. Here's the procedure to obtain these forms:

### **1. Understanding the Forms:**

- **Form 15CA**: This is a declaration required under the Income Tax Act for remittances made to non-residents. It needs to be filled out and submitted electronically.

- **Form 15CB**: This is a certificate issued by a Chartered Accountant (CA) that certifies the correctness of the details mentioned in Form 15CA and provides confirmation that the tax has been paid or is not payable on the remittance.

### **2. Procedure to Obtain Form 15CA:**

1. **Determine Eligibility:**
- Ensure that Form 15CA is required for the type of remittance you are making. It is typically needed for payments such as royalties, technical services, interest, etc., to non-residents.

2. **Complete Form 15CA Online:**
- Go to the Income Tax Department's e-filing website.
- Log in using your credentials.
- Navigate to the “e-File” menu and select “Prepare and Submit Online Form (15CA).”
- Fill in the details of the remittance, including the amount, purpose, and recipient details.

3. **Submit Form 15CA:**
- After filling in the required details, submit the form online.
- An acknowledgment number will be generated, which you should keep for your records.

### **3. Procedure to Obtain Form 15CB:**

1. **Engage a Chartered Accountant (CA):**
- You need to engage a CA to issue Form 15CB. Provide them with all necessary documentation related to the remittance.

2. **Documentation Required:**
- **Remittance details**: Amount, purpose, recipient details.
- **Supporting Documents**: Contracts, invoices, and any other relevant documentation.
- **Tax Payment Details**: Proof of tax payment, if applicable.

3. **CA’s Certification:**
- The CA will verify the details and issue Form 15CB, certifying that the remittance is in accordance with the tax laws and that the tax has been paid or is not applicable.

4. **Submit Form 15CB to the Bank:**
- Submit Form 15CB to your bank along with Form 15CA. The bank will use these forms to process the remittance.

### **Draft Letter to Request Form 15CB from a Chartered Accountant**

Here’s a draft letter you can use to request Form 15CB from a CA:

---

**[Your Name]**
**[Your Address]**
**[City, State, PIN Code]**
**[Email Address]**
**[Phone Number]**

**Date: [Date]**

**To**
**[Chartered Accountant’s Name]**
**[Chartered Accountant’s Firm Name]**
**[Address of the Firm]**
**[City, State, PIN Code]**

**Subject: Request for Issuance of Form 15CB**

Dear [CA’s Name],

I hope this letter finds you well.

I am writing to request your assistance in issuing Form 15CB, required for our remittance to a non-resident as per the Income Tax Act, 1961. The details of the remittance are as follows:

- **Remittance Amount**: ₹[Amount]
- **Purpose of Remittance**: [Purpose, e.g., Royalty Payment]
- **Recipient Details**: [Name, Address, Country]
- **Invoice/Contract Number**: [Details]
- **Tax Payment Details**: [Details, if applicable]

Please find enclosed all relevant documentation related to the remittance, including contracts, invoices, and proof of tax payment (if applicable).

Kindly review the documents and provide Form 15CB at your earliest convenience. Your prompt assistance in this matter will be greatly appreciated.

Should you require any additional information or documentation, please do not hesitate to contact me.

Thank you for your support.

Yours sincerely,

**[Your Signature]**
**[Your Name]**

---

### **Summary**

- **Form 15CA**: Submit electronically through the Income Tax e-filing portal.
- **Form 15CB**: Obtain from a Chartered Accountant based on your provided documentation.

Ensure you have all relevant details and documentation ready before approaching the CA, and keep copies of all forms and communications for your records.