LAKSHMI KANTH (TAX CONSULTANT) (449 Points)
13 September 2019
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(169075 Points)
Replied 13 September 2019
TDS u/s 195: In case of sale of property by NRI, it is mandatory for buyer to deduct 20.8% (PLUS SURcharge, if liable) TDS on the sale price of the property if capital gain is long term capital gain.
In case of short term capital gain, TDS will be 31.2% (plus Surcharge) irrespective of income tax slab of NRI.
TDS is applicable even if value of property is less than 50 lakhs.
But NRI can apply for a lower TDS deduction certificate u/s. 197 of the act from Jurisdictional Assessing Officer for allowing the residential buyer to deduct tax at a rate lower than TDS Rates as mentioned under section 195.
Suresh Thiyagarajan
(Student)
(3986 Points)
Replied 13 September 2019
1. When a property is purchased from an NRI then TDS u/s 195 @ 22.8% is to be deducted before making the payment to the NRI.
2. TDS will be on the entire sale consideration.
Please correct me if the above solution has an alternative view.
LAKSHMI KANTH
(TAX CONSULTANT)
(449 Points)
Replied 13 September 2019
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(169075 Points)
Replied 13 September 2019
Its just TDS provision and not tax levy.......
NRI seller has two options......
Either apply for lower deduction of tax beforehand....
Or claim refund after filing the return.
Return filing in any case becomes mandatory. And tax payable will be as per liability under the act...
Kapadia Pravin
(17259 Points)
Replied 13 September 2019
LAKSHMI KANTH
(TAX CONSULTANT)
(449 Points)
Replied 14 September 2019
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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