Questions TDS ON NRI PURCHASE

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Kirti Menkudle

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February 15, 2019 5:34 pm

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TDS ON NRI PURCHASE

Hi Sir,
We are planning to buy a house property worth 1.03 Cr agreement value in the joint name and joint home loan of myself and my husband. The property is also in the joint name of husband and wife and they have an Indian Pan card. However, their status is NRI. As per the rule banks says upto 23....

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Amlan Dutta

1. What things / documents should we ask from him for his investment in bonds. (Worried coz buyers are liable to pay TDS & dont want any income tax notice for not giving TDS)

Why should you even want to know whether he will get capital gain exemption or not
This has no bearing on deduction of TDS
S...

February 15, 2019

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Kirti Menkudle

Thanks a lot Sir for your elaborate answer to each and every query.
Appreciate your time and effort to help people like me who are not aware of many facts.

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February 15, 2019

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Amlan Dutta

No worries, the day you can , you also help others in your capacity ...until then, goodbye.

February 15, 2019

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Amlan Dutta

February 15, 2019

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Amlan Dutta

February 15, 2019

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Kirti Menkudle

Thanks a lot Sir for your elaborate answer to each and every query.
Appreciate your time and effort to help people like me who are not aware of many facts.

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February 15, 2019

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Paritosh Jain

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October 1, 2018 4:08 pm

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TDS ON NRI PURCHASE

I am to purchase a flat from NRI. Capital gains for NRI ~ 40 Lacs.
I need to:
i) deposit TDS @ 20.8% on the Capital gains online through form 281
ii) File TDS returns before 15 Oct in Form 27Q
iii) Download form 16A and issue to the seller
Please let me know if I also need to fill form 15CA? Any other f...

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Amlan Dutta

You have asked similar query before where i have addressed this in much detail , i will not be repeating my answer again .....you would like to check your own query history ( we will shortly make this feature available as answer option so that me/other's will not have to repeat our answers uselessl...

October 1, 2018

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Amlan Dutta

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Hima Bindu

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May 22, 2018 12:21 pm

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TDS ON NRI PURCHASE

Hello Amlan,

We are based out of Bangalore and bought an apartment from an NRI and sale value is more than 50 lakhs. We came to know that we need to deduct tax at rate of around 20%.

I have seen your video on how to apply for NIL/lower TDS certificate by submitting form 13. We also heard in Bangal...

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Paritosh Jain

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April 30, 2018 11:52 am

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TDS ON NRI PURCHASE

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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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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