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Tds on property sold by nri

186 views 1 replies

Atush Jain

Asst. Professor

162 Points Joined August 2016

A NRI was allotted a flat by Omex faridabad in 2005. Though as per Buyer's agreement the possession was to be given in 3 years, offer for temporary possession for getting furnishing was offered in June 2014; the actual possession has been given now in 2016. Total cost of the flat was rs 32 lakh, which is being sold in Rs 48 Lakh. Pl advise the rate and amount on which TDS will be deducted i.e it will be on RS 16 Lakh or Rs 48 Lakh.Pl advise relevant section of IT Act

Replies (1)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

208750 Points Joined July 2016

" ...which is being sold in Rs 48 Lakh. Pl advise the rate and amount on which TDS will be deducted?"

Read: When a Non-resident sells an Immovable property in India, Capital gains income may accrue on such sale to the Non-resident which is chargeable to tax in India. Therefore, the consideration from sale of property in India by a non-resident is chargeable to tax in India and is covered by Section 195 and therefore tax has to be deducted at the time of payment of such consideration.

So, under section 195, purchaser has to deduct tax @ 20% over sell price of 48L