NRI investments

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 June 2011 An NRI has purchased a property from his NRI (E) Account
Now he is selling the property to resident individual.
Whether he can deposit the amount in NRO account

A resident Indian has to deduct tax on payment to NRI

Now if he does not have TAN no, what are the implications?

What is the procedure for obtaining certificate from ITO for non deduction of Income tax?
Any benefit u/s 54 of the IT Act for NRI?

CA PARAS BAFNA

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23 June 2011 An NRI has purchased a property from his NRI (E) Account
Now he is selling the property to resident individual.
Whether he can deposit the amount in NRO account

He can deposit the amount in NRO account only.

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CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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23 June 2011 Q -A resident Indian has to deduct tax on payment to NRI

Reply - A resident is not required to deduct tax on property transaction.

Q- Now if he does not have TAN no, what are the implications?

Reply- As no need to deduct tax - TAN is not required.

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CA PARAS BAFNA

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23 June 2011 Q -What is the procedure for obtaining certificate from ITO for non deduction of Income tax?

Reply- TDS not required hence Not Applicable.

CA PARAS BAFNA

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23 June 2011 Q -Any benefit u/s 54 of the IT Act for NRI?

*
Reply - Benefit available to an Individual irrespective of his residential status
U/s 54 to the extent of amount of capital gains invested in purchase of a new residential house.

CA. Anuj Gupta

CA. Anuj Gupta (Expert)
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22 August 2011 Q -A resident Indian has to deduct tax on payment to NRI

Reply - A resident is REQUIRED to deduct tax on property purchase transaction u/s 195 which doesn't provide any exemption to individuals.

Q- Now if he does not have TAN no, what are the implications?

Reply- TAN shall be required. Without that TDS deduction , TDS deposit and TDS return filing can't be done.

Anuj
+91-9810106211
femaquery@gmail.com

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CA. Anuj Gupta

CA. Anuj Gupta (Expert)
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22 August 2011 Q -What is the procedure for obtaining certificate from ITO for non deduction of Income tax?

Reply- Detailed procedure provided in section 195.

Q -Any benefit u/s 54 of the IT Act for NRI?

Reply - Benefit available to an Individual irrespective of his residential status
U/s 54 to the extent of amount of capital gains invested in purchase of a new residential house in INDIA and NOT OUTSIDE INDIA.

Anuj
+91-9810106211
femaquery@gmail.com