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TDS sec 194ia

02 June 2021

Fact of case
1. Mr Ravi transfer property (land) situated in India for ₹76 lacs and Mr Ravi is non resident for AY 2021-22 . Above mentioned property transfer to Mr suraj.Is Mr suraj liable to deduct tds ?
will your response vary if Mr Ravi was resident.

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9 Replies

CA Subhankar Basu (Chartered accountant ) (318 Points)
Replied 02 June 2021

Sec 194 ia applicable for resident transferor ....here transferor is non resident ,so his income accrue & received in India as per sec 5 ,here sec 195 will applicable for TDS purpose

if Ravi was resident then sec 194 ia would apply

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CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 02 June 2021

In first case section 195 is applicable as it leads to NRI case.

In case of resident TDS should be deducted

Sivaramaraju G (Learner) (2398 Points)
Replied 02 June 2021

Any person, being a transferee, responsible for paying to a resident transferor(if ravi is resident) any sum by way of consideration for transfer of any immovable property (other than agricultural land), shall, at the time of credit of such sum to the account of the transferor or at the time of payment of such sum in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equal to one per cent of such sum as income tax thereon.

sec 195 applied for any sum which is chargeable to tax under the act is payable to non resident(if Ravi is non resident) then TDS has to deduct.

shrawan choudhary (132 Points)
Replied 02 June 2021

Thank you ! rate of tds under sec 195?

shailesh (ca student) (296 Points)
Replied 02 June 2021

SECTION 194IA @ 1'%

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CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 03 June 2021

The following are the TDS deduction rates applicable under Section 195 of Income tax Act, 1961:

Income from investments made by a NRI
20%

Income from long-term capital gains under Section 115E for a NRI 10%
Income from long-term capital gains 10%

Short-term capital gains under Section 111A 15%

Any other income from long-term capital gains 20%

Interest payable on money borrowed in foreign currency 20%

Income from royalty payable by the Government or an Indian concern 10%

Income from royalty other than that which is payable by the Government or an Indian concern 10%

Income from fees for technical services payable by the Government or an Indian concern 10%

Any other source of income 30%

Shankar Rugge (376 Points)
Replied 03 June 2021

For residential property TDS of 30%+cess is applicable in above case. Or else NRI has to get fresh TDS deduction certificate from NRI Income tax office of the place where his property is located by giving capital gain details etc

CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 06 June 2021

TDS should be deducted @ 10%

Shankar Rugge (376 Points)
Replied 06 June 2021

When an NRI sells property, the buyer is liable to deduct TDS @ 20%. In case the property has been sold before 2 years(reduced from the date of purchase) a TDS of 30% shall be applicable.