• Section 54 exemption on TDS for NRI on sale of immovable property

I am an NRI planning to sell one immovable property and buy another. The purchase price of the second property will be more than the selling price of the one I own now, so I'd like to avoid having 20+% TDS withheld on the proceeds of the first sale. 

I read that I need to request a Section 54 exemption from the tax officer that has jurisdiction over my PAN card. From the incometaxefiling web site, that appears to be an office in New Delhi, "Circle Int Tax 1(1)(1)D". 

I haven't been able to find any information about what form to fill, where to send it, etc. Do I need to hire a CA for this? Should it be a CA located in Delhi? Thanks!
Asked 2 years ago in Capital Gains Tax

Dear Sir,

You need to file Form 13 along with the supporting documents with the jurisdictional AO for issuance of certificate u/s 197.

Thanks

Vivek Kumar Arora
CA, Delhi
3800 Answers
242 Consultations

5.0 on 5.0

An application for Nil/ Lower deduction of TDS is required to be filed in Form 13 to the Income Tax Officer, and the tax officer on being satisfied that lower deduction of TDS is justified shall issue a certificate for the same under Section 197.

Nil/ Lower deduction of TDS is only applicable once the Income tax officer has issued a certificate for the same in response to an application made in Form 13.

It has to be done with your PAN jurisdiction I.e. Delhi. You can also do it through a local CA in Delhi.

Lakshita Bhandari
CA, Mumbai
5245 Answers
351 Consultations

5.0 on 5.0

Yes, Delhi.

It's not online. It has to be filed manually to the department. However, you may check it through your income tax ID if it's online for Delhi because for cities like Bangalore, it is online now.

Lakshita Bhandari
CA, Mumbai
5245 Answers
351 Consultations

5.0 on 5.0

Dear Sir,

Yes it is to be filed based on the jurisdiction of your PAN card irrespective of the location of the property i.e. Kolkata. It needs to be filed manually online. You can hire a CA as a representative who will ask for the required documentation to get the lower rate deduction certificate. There is no online facility available for filing of Form 13.

Thanks

Vivek Kumar Arora
CA, Delhi
3800 Answers
242 Consultations

5.0 on 5.0

Dear Sir,

Yes I handle all these types of work.

Thanks

Vivek Kumar Arora
CA, Delhi
3800 Answers
242 Consultations

5.0 on 5.0

Hi,

The application for lower/Nil deduction of tax can be done by filing Form 13 to the Income Tax Officer and if he is satisfied he may issue the same u/s 197. It will be convenient for you to get someone who is based out of Delhi do this work.

regards,

Nikhil

Nikhil Khanna
CA, Mumbai
1428 Answers
19 Consultations

4.8 on 5.0

Yes, you are correct that this needs to be filed manually in Delhi based on the jurisdiction of your PAN card.

There is no online facility i guess for this service and it is to be filed manually.

Regards,

Nikhil.

Nikhil Khanna
CA, Mumbai
1428 Answers
19 Consultations

4.8 on 5.0

Hi,

Yes, you will have to file an application with the assessing officer in Delhi.

CA from Delhi would be better equipped to help you out in this case.

Please feel free to call/ revert in case you need more clarity.

Thanks and regards

Abhishek Dugar

CA CS B.Com

Abhishek Dugar
CA, Mumbai
3576 Answers
183 Consultations

4.8 on 5.0

Dear Sir,

It is not necessarily to be filed in delhi rather it need to be filed in the international taxation ward in your jurisdiction of PAN.

So please file necessary documents and declaration in your jurisdictional ward only.

Vishrut Rajesh Shah
CA, Ahmedabad
773 Answers
22 Consultations

5.0 on 5.0

Hi,

It has to be in person. You will need a professional who is based in Delhi to take care of the assignment for you.

Preferably do it post march, since the certificate even if received will expire on 31st March 2018.

Regards,

Keerthiga Padmanabhan

M.Com., CA, LL.B

Keerthiga Padmanabhan
CA, Greater Mumbai
784 Answers
27 Consultations

5.0 on 5.0

Hello,

Yes, applying for a lower deduction certificate is a physical process. You will need to appoint a professional to do the entire process for you.

It will take approximately a month to get the certificate from the department.

Trust this clarifies your query.

Feel free to call / get back in case of further clarifications.

Thanking You.

Regards,

Rohit R Sharma

BCOM, FCA, LLB, CERT. FAFP

Rohit R Sharma
CA, Mumbai
2104 Answers
95 Consultations

5.0 on 5.0

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