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Paritosh Jain

Category : TDS ON N..,

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April 30, 2018 11:52 am

Hi Amlan,

I have a few questions regarding purchase of a second hand flat (built during 1990) at Mohali from an NRI (US based) for Rs. 95 Lakhs (all in white) in my wife's name. The transaction will happen in June 2018.
1. What is the rate at which TDS has to be deducted in FY 2018-19 in the case o...

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Amlan Dutta

Pointwise solutions as follows ,
1. What is the rate at which TDS has to be deducted in FY 2018-19 in the case of an NRI seller.
TDS on NRI purchases is to be deducted irrespective o...

Pointwise solutions as follows ,
1. What is the rate at which TDS has to be deducted in FY 2018-19 in the case of an NRI seller.
TDS on NRI purchases is to be deducted irrespective of the transaction value of the property( unolike domestic transfers where only TDS has to be deducted if the sale value exceeds 50 lakhs ) ......Section 195 clearly stipulates that the buyer is to deduct 20 % TDS on capital gains after obtaining a certificate from seller the capital gains arising from the sale. The seller has to contact his income tax officer to get the details of capital gain. The seller has to give this certificate of gains to the buyer who has to obtain a TAN number compulsorily before deducting 20 % TDS on capital gains . In case this certificate is not given by the seller to the buyer , then the buyer shall deduct 20 % TDS on whole sale value. It is on the onus of the buyer to deduct and deposit TDS , file TDS return 27 Q and issue TDS certificate to buyer . If buyer fails /forgets to deduct TDS , then he shall alone be held liable and not the seller
You will need to apply for TAN number first . Unlike domestic purchases where buyer can deduct TDS using PAN directly , such is not possible in case of NRI sales

2. What are all the forms to be filled - Form 15CA, Form 15CB
Form 15CA (declaration of remitter and is used as a tool for collecting information in respect of payments which are chargeable to tax in the hands of recipient non-resident. This form helps Income Tax Department in tracking foreign remittances & their taxability) needs to be filled only if the remittance is chargeable to tax in India. If remittance/payment is not chargeable to NRI then Form 15CA is not required

Even if the remittance is not chargeable to tax, the Form 15CB ( Tax determination certificate) . In fact, the CA issuing the Form 15CB examines the remittance having regard to chargeability provisions under section 5 and 9 of Income Tax Act along with provisions of Double Tax Avoidance Agreements with the Recipient’s Residence Country.
Therefore even in cases where form 15 CA is not required it is prudent to obtain form 15 CB

3. Do I also need to deposit TDS at the time of signing the agreement (in May-June 2018) and payment of earnest money around 9.5 lakhs.
Answer - Basically from all payments made to the seller , 20 % TDS needs to happen ….you can do it right at the start . ask the seller for the capital gains certificate and do the TDS deduction and deposit right away...if he does not give you the certificate, you can do 20 % TDS on the sale value

4.) My wife is an Income Tax assesse in the 20% bracket. I am an income tax assesse in the 30% bracket. I will support her in buying the flat with around 56 lakhs by breaking my FDs. I will be buying the flat in my wife's name only as I already have a self-occupied flat nearby in my name and do not want to own one more property for the reason of avoiding tax on notional rent. Wish to know,

1. should I provide her this amount as interest free loan or as gift.
2. For contributing to her this amount either as interest free loan or gift, what is the documentation I am required to do. What is the appropriate time for this documentation?
Answer -This won’t be possible. If husband gifts wife any sum in absence of any consideration like in this case, then clubbing provision under section 61 would take over and any income from such asset would be considered husband’s income. In this case, you will remain co owner of house and will have to pay proportionate tax on notional rent as per co ownership.

You can give her a gift of 56 lakhs by executing a gift deed …since spouse falls under definition of relative under section 56(2) , the money received will be exempt in her hands and your hands as well , but any income investment of this asset ( in this case house ) will be clubbed to your income only since clubbing section under section 61 would take over

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April 30, 2018

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Amlan Dutta

Pointwise solutions as follows ,
1. What is the rate at which TDS has to be deducted in FY 2018-19 in the case of an NRI seller.
TDS on NRI purchases is to be deducted irrespective o...

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April 30, 2018

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Manjit kumar

Category : Income t..,

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April 29, 2018 11:45 pm

Hello amlan sir, I have filed rectification for arrear of salary, maine original return due date ke pehle file ki thi but rectification after due date ki, arrear ka relief to mil gya but interest pay karne ka intimation aa gayaa, kya karu help me sir...

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Amlan Dutta

If you agree with the intimation demand of interest , you can use the challan 280 to pay it online .....if you don't agree with the interest demand , then you have to raise a rectification again ......i think interest should not apply since form 10 E alone was perhaps not submitted in time ...can y...

April 30, 2018

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Shiv

Category : Income t..,

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April 29, 2018 11:15 pm

Hi, i hav confused about 26as nd form 16,
Actually i want to efilling my itr, but whn i saw form 16 there is less amount deducted than 26as.mujhe itr filling form me kon c salery bhrni hai? Jo 26as ki hai ya fir form 16 wali? Nd form 16 me or 26as tds me difference ko kese solve kru? Or ye difference...

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Amlan Dutta

Take figures from form 26 AS ....ask company to update TDS return properly ... This happens when the company doesn't file the TDS returns correctly ....anyways , you can only claim credit of TDS as per 26 AS ....better to have things corrected ...take it up with deductor

April 30, 2018

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Shiv

Queries bhut hain sir, isliye contact krke btana chahta hu.

May 21, 2018

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Hema Latha

Category : Income t..,

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April 29, 2018 7:25 pm

Sir
Please tell me what will be the income from other sources

1. 26AS amt+savings interest i.e. 2588+1456=4044/- or
2. Interest paid + interest Accured i.e. 6791+14391=21182/- as per deposit certificate

All the 26AS entries are fixed deposit entries only. But all the entries in deposit certifi...

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Amlan Dutta

The interest entries for the last quarter will get updated by mid may ....besides you will show total interest , irrespectve of whether it is reflecting or not reflecting in 26 AS .....but yes , first bifurcate which all interest entries are savings interest ....because you stand to claim deduction ...

April 29, 2018

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