LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

NonResident (NonResident)     01 August 2010

Urgent -Pls help with query on Section 195 IT act

Section 195 of Income Tax act states as follows;

Subject to rules13 made under sub-section (5), any person entitled to receive any interest or other sum on which income-tax has to be deducted under sub-section (1) may make an application in the prescribed form to the 14[Assessing] Officer for the grant of a certificate authorising him to receive such interest or other sum without deduction of tax under that sub-section, and where any such certificate is granted,


The rules mentioned above are as follows:

13.  See rule 29B and Form Nos. 15C and 15

rule 29B subrule 2 states

Any person entitled to receive any interest, or other sum, on which income-tax has to be deducted under sub-section (1) of section 195 may, if he fulfils the conditions specified in sub-rule (2), make an application for the grant of a certificate under sub-section (3) of section 195 authorising him to receive without deduction of tax under sub-section (1)

Sub-rule 2:

The conditions referred to in sub-rule (1) are the following, namely :—

           (i)  the person concerned has been regularly assessed to income-tax in India and has furnished the returns of income for all assessment years for which such returns became due on or before the date on which the application under sub-rule (1) is made;


(3) The application under sub-rule (1) by a banking company shall be in Form No. 15C and by any other person [referred to in clause (ii) of sub-rule (1)] shall be in Form No. 15D.

As a Non-resident I have not been assessed to income-tax in India for the last 7 years. Does this mean that I cannot apply for the certificate for non-deduction of tax at source? I am selling a property in Noida. Will the buyers have to apply for this certificate?

Thank you very much in advance for any help and advice you can provide.


 2 Replies

NewDefendant (None)     07 August 2010

Yes, you cannot apply for a certificate under 195 as you do not qualify under rules of 29B. Ask your buyers to apply on your behalf.

Vineet (Director)     09 August 2010

why do you want this certificate? In any case the long term capital gains are chargeable to tax @10% u/s 115E. The payer has to deduct this tax and deposit the same to meet your tax liability.

You cannot apply for certificate u/s 195(3) and even the deductor will not be able to get a certificate u/s 195(2) as your income is chargeable to tax.

PS: please provide your PAN to deductor otherwise he will have to deduct TDS @20%.

Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Popular Discussion

view more »

Post a Suggestion for LCI Team
Post a Legal Query