Hello everyone,
one of my client has purchased a residential house property from a non resident indian. (resident of canada)for Rs.1.50 crores. since 194-IA is not applicable for deduction i am confused as to at what rate tax should be deducted and whether it is necessary to apply for TAN ?
waiting for the views of the experts.
No need to take TAN
Provisions for Non Resident Indian:- If payment is made to a Non-Resident then section 194-IA will not be applicable. Rather section 195 will be attracted and TDS is required to be deducted @ 20%+EC&SHEC on the sale consideration. Surcharge @ 10% will be applicable if amount paid exceeds Rs 1 crore. The limit of Rs 50,00,000/- is not applicable in case of payments made to NRI’s.
Read more at: /forum/tds-on-sale-of-immovable-property-sec-194ia-simplified-268528.asp#.U3R9e4GSxZo
Section 195 will apply instead of 194-IA
Dear Shilpa, here in this case nothing to do with section 44 AB. as provisons of 194 ia or 195 in lieu of 194 ia is applicable to all who enter into any transaction of sale and purchase of property exceeding specific limit as the case may be.
CAclubindia
