E V RAMA KRISHNA (CHARTERED ACCOUNTANT) (361 Points)
27 November 2015An NRI(US) client sent money through her NRO ac to purchase a house in India and purchased the house.
after 2 months from the date of purchase she sold the same for a loss of Rs 5,00,000 and the buyer did not make tds u/s 195.
Now she wants to repatriate the amount to US through NRO ac and the banker requires 15CB and 15CA.
Whether banker is reuired to make TDS on the same amount.
what are the implications under IT Act and FEMA.
Thanks in advance
J. K. Ratan
(Compliance Advisor)
(794 Points)
Replied 29 November 2015
Dear Sir
You have to comply with following statutory requirements...
FEMA :-
1.The NRI may remit from the balance held in NRO account an amount not exceeding 10,00,000 USD per financial year.
2. In other case you will have to take prior Approval of RBI.
Income Tax Act 1961 :-
1. It was the buyers responsibility to deduct TDS on short term capital gain at slab rate applicable to Individual.
2. You will have to provide form 15CA & 15CB from a practicing CA for remittance of funds from NRO account.
3. Banker will not deduct TDS on your remittance.
Note:- It's liability of CA to determine the applicable taxes on above mentioned remittance and direct the banker to deduct or not TDS on such amount through his certificate "i.e 15CA & 15CB"
CAclubindia
