Under 194la
syed niaz ahmed shah
(Querist) 02 June 2012
This query is : Resolved
i am an NRI by status.
I have a property in Jammu which is being acquired , and the government is saying that we will deduct 10% TDS despite I am of the opinion, that NRI is exempted to pay.Please let me know why there hAS BEEN SLOW TO ANSWER
M V Gupta
(Expert) 02 June 2012
Dear Mr. Syed, your impression that NRIs are exempt from IT is not correct. It is only interest earned from certain investments made by you in India that are exempt from the tax. Ex: Interest earned on your NRE A/c or PPF account held by you etc.When the property is being acquired by the Govt, you will be liable to pay tax on capital gains resulting from the acquisition. Pl consult an auditor of your area to ascertain whether the compensation offered by the Govt results in any CG. He will guide you in the matter if there is CG and how to avoid tax on it.
ajay sethi
(Expert) 02 June 2012
agree with mr gupta
C. P. CHUGH
(Expert) 04 June 2012
Agreed with Mr Gupta. You are liable to pay tax on Capital Gains, if there is any, after taking into consideration the indexed cost of acquisition and sales realisation. What ever tax is deducted at source, shall be in the nature of advance payment of tax and shall be adjustable against your final liability.
