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Sameer (Owner)     05 April 2013

Tds on nri transaction

 

Hello all,

This is my first post and really important one ! So plese help :)

I am buying a flat from NRI. Here are some details 

Flat is 15 years old. The flat is on the name of Mr X and Mrs X. Mr X is now in India and he is agreed to sale us flat for the 70 lacks (40 white 30 black. Out of 40 lacks white , 25 lacks will be bank loan -). As Mrs X is not in India, Mr X has got power of attorny which is verified by our lawyer.  

 

Mr X holds pan card and said he has indian bank account. He says TDS is not applicable with this deal. But from my research it seems like we will have to pay TDS ourself as a source (20 percent for long term gain). 

Please provide guidance on this aspect.I would like know exact TDS rule applicable on this case.

Thanks for looking. Waiting for your valuable reply.



Learning

 1 Replies

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 )     05 April 2013

The provisions of section 195 of the Act would require tax deduction on payments made to non residents (including PIOs) which are chargeable to tax inIndia. The purchaser on purchase of a property from a non resident is expected to deduct tax on income by way of capital gains at 20 per cent.


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