Tds in nri real estate deal

I will deduct TDS on the payment made to the NRI seller as per the rate mentioned here https://www.charteredclub.com/tds-property-purchase-nri/

But the sale value is less than the guidance value because of poor market conditions.

Which value has the TDS (in lieu of capital gains) to be deducted on?

Sale Value or Guidance Value?

Replies (4)

Can someone please guide me on this?

Secondly, if I pay and deduct the TDS (for an NRI) in June, by when do I have to file the TDS (TAN) return?

Alternatively, what if I pay and deduct in the month of July?

Thanks

If purchase value is less than FMV or circle rate, purchaser is liable to pay tax over the difference amount (if more than 50,000/-) as per section 56(2), assessed under 'Income from other Sources'

You are suppossed to deduct TDS u/s. 195 of IT act, over the agreement value.

TDS amount to be deposited to treasury by 7th of next month of deduction.

A broker mentioned that the latest budget has given a relief to the extent of 5% between the agreement value and the guidance value/ circle rate.

Is it true? How does it apply? How does one make use of the provision?

Secondly, on the rate of TDS deduction, the broker was of the view that once an IT Officer issues a certificate it can be on par with a resident Indian @ 1%. Is that true?

What is the certificate issued by the IT Officer all about? Computation of capital gains? ..... OR .... ratification of a lower valuation for the property?..... OR ..... both?

Can anyone upload a copy of a similar IT certificate to know what does it contain .....

A broker mentioned that the latest budget has given a relief to the extent of 5% between the agreement value and the guidance value/ circle rate. Is it true?

True to the extent it is within 5% of circle rate.

How does it apply? How does one make use of the provision?

If the circle rate is 100, but your agreement is for 94 Rs. the section will not give any relief. But if your purchase is 95 or more, you will not be liable for any additional tax.

Secondly, on the rate of TDS deduction, the broker was of the view that once an IT Officer issues a certificate it can be on par with a resident Indian @ 1%. Is that true?

ITO can give certificate to deduct lower amount of tax u/s. 197, but not necessarily 1%. Refer:: form-13-tds-deduction  &  /guides/section-197

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