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TDS in case of immovable property purchased by a resident from a NRI

Rahul Rustagi (Student CA Final ) (310 Points)

18 March 2019

Hey,

An immovable property was purchased by a resident individual from a person who is NRI. The property is situated in India. My doubt is whether TDS u/s 195 is to be deducted on the sale consideration to the payee or the TDS is to be deducted on the LTCG portion only.

Its urgent

Thanx

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3 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (178226 Points)
Replied 18 March 2019

Unless 'Lower deduction of Tax' certificate u.s/ 197 IT act is obtained from his Jurisdictional ITO, TDS is required to be deducted on total sale consideration (u/s. 195 IT act)

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Zeeshan Baig (19 Points)
Replied 18 March 2019

deduct u/s 195 on ltcg .. and also ask for a copy of original sale deed

Rahul Rustagi (Student CA Final ) (310 Points)
Replied 19 March 2019

As far as my interpretation is concerned, thew TDS u/s 195 should be deducted only on the Income portion. So LTCG amount should be amount on which TDS should be deducted.