Indexation for F. Y. 2010 - 2011
This query is : Resolved
14 April 2010
Dear Sir,
My query is that i had sold one house on 14.04.2010 and i want to know what is the Indexation for F. Y. 2010 - 2011
Regards
My query is that i had sold one house on 14.04.2010 and i want to know what is the Indexation for F. Y. 2010 - 2011
Regards
14 April 2010
FOR AY 2010-11 CII IS 632 FOR AY 2011-2012 NOT YET DECLARED.
14 April 2010
Indexation for F. Y. 2010 - 2011 yet to be notified
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
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
01 August 2024
Applying for a Nil Rate of TDS Certificate under Section 197 for an NRI involved in a property sale can be complex, especially when dealing with exemptions under sections like 54 and 54EC. Here’s a step-by-step guide on how to approach this situation:
### 1. **Application for Nil Rate of TDS Certificate (Section 197)**
To obtain a Nil Rate of TDS Certificate under Section 197, the following steps are generally required:
1. **Application Submission:**
- Submit Form 13 to the Assessing Officer (AO) for the issuance of the Nil Rate of TDS Certificate. This form is used to apply for a lower or nil deduction of tax at source.
2. **Documents Required:**
- **Sale Agreement:** Provide a copy of the sale agreement or memorandum of sale.
- **Proof of Exemption Claim:** Documents related to the claim under sections 54 and 54EC.
- **Evidence of Investment:** If claiming exemption under section 54EC, provide details of the bonds to be purchased. In this case, since the bonds have not yet been purchased, you can provide an undertaking.
- **Escrow Details:** Documentation related to the escrow arrangement.
- **PAN Card:** PAN details of the NRI.
- **Passport:** Passport and proof of NRI status.
- **Income Tax Returns:** Recent income tax returns of the NRI, if available.
- **Undertaking:** An undertaking regarding the future investment in bonds under section 54EC, since the purchase will be made after the release of funds from escrow.
### 2. **Handling the Escrow Account and Certificate Issuance**
Since the bond purchase will only be made after the release of funds from the escrow account, here’s how to proceed:
1. **Undertaking for Future Bond Purchase:**
- Draft an undertaking stating that the amount of Rs 50 lakhs will be invested in bonds under section 54EC once the funds are released. This will need to be submitted to the AO along with Form 13.
- The undertaking should include details about the intent to invest and the timeline by which the investment will be made.
2. **Certificate Issuance:**
- The AO may issue a Nil Rate of TDS Certificate based on the undertaking and proof of eligibility for exemption. The certificate will be issued for the full amount as per the exemption claim, allowing the amount to be released from the escrow account.
### 3. **Follow-Up and Compliance**
1. **Investment Proof:**
- Once the funds are released and the investment in 54EC bonds is made, ensure to keep the proof of investment. This will be required for future compliance and to validate the claim made in the Nil Rate of TDS application.
2. **Reconciliation:**
- After the issuance of the TDS certificate and investment, provide the relevant proof to the escrow agents and ensure proper reconciliation of the funds.
### Summary
- **Undertaking:** Submit an undertaking along with Form 13 indicating the intention to invest in 54EC bonds once the funds are released.
- **Documentation:** Include all relevant documents such as the sale agreement, proof of exemptions, PAN, passport, and an undertaking for the future investment.
- **Certificate Issuance:** The AO will consider the undertaking and documents provided to issue the Nil Rate of TDS Certificate.
By following these steps and submitting the necessary documents and undertaking, you should be able to manage the TDS aspects of the property sale and ensure compliance with the Income Tax Act.
### 1. **Application for Nil Rate of TDS Certificate (Section 197)**
To obtain a Nil Rate of TDS Certificate under Section 197, the following steps are generally required:
1. **Application Submission:**
- Submit Form 13 to the Assessing Officer (AO) for the issuance of the Nil Rate of TDS Certificate. This form is used to apply for a lower or nil deduction of tax at source.
2. **Documents Required:**
- **Sale Agreement:** Provide a copy of the sale agreement or memorandum of sale.
- **Proof of Exemption Claim:** Documents related to the claim under sections 54 and 54EC.
- **Evidence of Investment:** If claiming exemption under section 54EC, provide details of the bonds to be purchased. In this case, since the bonds have not yet been purchased, you can provide an undertaking.
- **Escrow Details:** Documentation related to the escrow arrangement.
- **PAN Card:** PAN details of the NRI.
- **Passport:** Passport and proof of NRI status.
- **Income Tax Returns:** Recent income tax returns of the NRI, if available.
- **Undertaking:** An undertaking regarding the future investment in bonds under section 54EC, since the purchase will be made after the release of funds from escrow.
### 2. **Handling the Escrow Account and Certificate Issuance**
Since the bond purchase will only be made after the release of funds from the escrow account, here’s how to proceed:
1. **Undertaking for Future Bond Purchase:**
- Draft an undertaking stating that the amount of Rs 50 lakhs will be invested in bonds under section 54EC once the funds are released. This will need to be submitted to the AO along with Form 13.
- The undertaking should include details about the intent to invest and the timeline by which the investment will be made.
2. **Certificate Issuance:**
- The AO may issue a Nil Rate of TDS Certificate based on the undertaking and proof of eligibility for exemption. The certificate will be issued for the full amount as per the exemption claim, allowing the amount to be released from the escrow account.
### 3. **Follow-Up and Compliance**
1. **Investment Proof:**
- Once the funds are released and the investment in 54EC bonds is made, ensure to keep the proof of investment. This will be required for future compliance and to validate the claim made in the Nil Rate of TDS application.
2. **Reconciliation:**
- After the issuance of the TDS certificate and investment, provide the relevant proof to the escrow agents and ensure proper reconciliation of the funds.
### Summary
- **Undertaking:** Submit an undertaking along with Form 13 indicating the intention to invest in 54EC bonds once the funds are released.
- **Documentation:** Include all relevant documents such as the sale agreement, proof of exemptions, PAN, passport, and an undertaking for the future investment.
- **Certificate Issuance:** The AO will consider the undertaking and documents provided to issue the Nil Rate of TDS Certificate.
By following these steps and submitting the necessary documents and undertaking, you should be able to manage the TDS aspects of the property sale and ensure compliance with the Income Tax Act.
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