05 October 2017
Sir
A person is purchasing a commercial property worth 16 lac ,payment being made through bank, from an NRI person who bought the same in year 1994 for 1 lac. Now the seller only has his passport as ID proof.
My question is what will be the tax obligations on the seller and the buyer, if any ? Also How those tax obligations need to be met ?
Thank you in advance
05 October 2017
1. Buyer has to deduct tax u/s 195 is the seller is an NRI now.
2. i) Seller has to take PAN card. ii) Seller has to compute capital gains and if there is tax liability has to be paid after deducting the tax in (1) above.
05 October 2017
I'd like to add: Seller has to approach and take a certificate from Assessing officer who will estimate the capital gains in hands of seller. TDS @1% will then be applicable on such capital gains
05 October 2017
Sec 195 is for purchase of residential property from NRI and here it is clearly stated that TDS will be applicable even if consideration is less than Rs.50 lacs
CAclubindia
