siva andhavarapu (ca final) (388 Points)
04 April 2019Buyer is resident and the nri is selling property through his poa and nri gave power to collect all the monies from buyer in poa.sale value is 35lakhs.my questions are as follows
1.whether tds to be deducted as sale value is less than 50lakhs?
2.If answer for 1 is yes,then on whom tds to be deducted(poa or nri seller)
3.What is the tds rate?
(urgent)
Lisha Bansal
(CA Finalist)
(2595 Points)
Replied 04 April 2019
1. Yes, TDS will be deducted even if sales value is less than 50 lacs.
2. NRI
3. Long Term Capital Gain –If the property is held for a period of 2 years or more then the gain arising to the non-resident is long-term in nature and taxable @ 20% (plus surcharge and cess).
| particulars | Where Income of the NRI Seller is Below Rs. 50 Lakhs | Where Income of the NRI seller is between Rs. 50 Lakhs to Rs 1 Crore | Where Income of the NRI seller is above Rs 1 Crore. |
| TDS Rate | 20% | 20% | 20% |
| Add: Surcharge | NIL | 10% on above Rate | 15% on above Rate |
| Total Tax | 20% | 22% | 23% |
| Add Health & Ed.Cess @ 4% | 4% on above Rate | 4% on above Rate | 4% on above Rate |
| Total TDS Rate | 20.8% | 22.88% | 23.92% |
STCG:
If the property is held for a period of less than 2 years then the gain arising to the non-resident is short-term in nature and taxable according to the applicable income tax slab.
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