Non residents taxation

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Deepak makhija (Querist)
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22 July 2009 X,y,z are three assessee out of which X is non resident and Y & Z are resident. X has one immovable property (long term) in india which he is willing to sell to Z through Y (by giving power of attorny).
Now...
What will be the tax position in the hands of X?
is the Y liable to pay tax on behalf of X as he satisfies the defination of agent under cahpter XII?
Is X liable to file the income tax return?

Abhishek Mohta

Abhishek Mohta (Expert)
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22 July 2009 The profit from the sale of the property will be taxable in the hands of X though he is a non-resident but his source of income is in India.

Y will be liable to pay tax on behalf of X as he is acting as an agent for X.

X is liable to file a return. Even Y can file a return on behlf of X as he can act as deemed assessee.