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Tax on payment to non resident

JAMES C DAVID (Senior Superintendent K S E B Ltd) (76 Points)

25 December 2019

I am planning to purchase a house property from a non resident , price rs. 60 lakhs. what the rate of tax to be deducted and the relevent section

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5 Replies

Rakesh Bandal (Self Employed and Agriculture) (1349 Points)
Replied 25 December 2019

If Location of Property is India then Tax needs to be deducted

also refer DTAA between NR's country and India

other relevant sections 194IA, 195

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JAMES C DAVID (Senior Superintendent K S E B Ltd) (76 Points)
Replied 25 December 2019

Whether LTCG @ 20% is the applicable rate of tax

Vikas Vaishley (89 Points)
Replied 26 December 2019

You are purchasing the said property, hence ltcg in your hands.

CA Arun Tiwari (Partner) (5450 Points)
Replied 28 December 2019

Sec 195 of the Income Tax Act governs the provision of Tax Deducted At Source that states that Tax is required to be deducted while making payment of sales consideration when an indian is purchasing property in India from NRI. He is liable to deduct TDS @ 20% in case the property is being sold by NRI within 2 years of acquisition and @ 30% if property is being sold by NRI after 2 years. As the sale consideration is 60 lakhs, Surcharge of 10% and HEC @ 4% .