TDS would be deducted @20.66% on Rs.26 lacs u/s 195 and needs to be deposited through challan to the govt.
Buying property from NRI by resident Indian
Sir, I am a resident Indian willing to buy a property worth Rs 26 Lacs. What would be the TDS for the above sale? whether I would have to deduct and submitt the same? The property is about 6 years old flat in Nagpur. Also I am taking a loan of Rs 23.4 Lac from nationaised bank and paying 2.6 lacs from my pocket. If TDS is to deducted from where it should be deducted, i.e. either from loan disbursment or from my share?
Asked 6 years ago in Capital Gains Tax
Hi
If you're buying a property from NRO, you need to deduct TDS @ 20% (to be added by cess) unless the NRI gets a No deduction certificate from his Assessing Officer.
The effective rate of TDS shall be 20.8%.
You will require a TAN for the same.
You can use any funds for such TDS payment.
Had it been a purchase from resident, no TDS would have been applicable.
Hi,
You will need to deduct TDS @20% from the payment you make to the seller, unless the seller gives a lower deduction certificate from his AO. This can be deducted either from your share or from the disbursement made by the bank.
Hope this clarifies,
Regards,
Nikhil.
Tds to be deducted @20% plus cess on sale value .
Request bank official to release payment net of tds,you deposit tds on full sale consideration valuei.e. 26lacs and take reimbursement from bank w.r.t tds amount ,that can be the way to proceed .
Hope it clatifies
Hi,
Since you are buying a property from NRI, you will have to deduct TDS @20% plus cess, if he is not giving you no TDS deduction certificate.
You can chose to deduct TDS from bank or through your own money whatever you want.
KINDLY CLARIFY THE FOLLOWING IN CONTINUATION TO MY EARLIER QUESTION. Sec 194IA: (1) Any person, being a transferee, responsible for paying (other than the person referred to in section 194LA) to a resident transferor any sum by way of consideration for transfer of any immovable property (other than agricultural land), shall, at the time of credit of such sum to the account of the transferor or at the time of payment of such sum in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equal to one per cent of such sum as income-tax thereon. (2) No deduction under sub-section (1) shall be made where the consideration for the transfer of an immovable property is less than fifty lakh rupees. (3) The provisions of section 203A shall not apply to a person required to deduct tax in accordance with the provisions of this section.
Asked 6 years ago
Section 194IA applies when the seller is a resident.
In case of NRI seller, section 195 applies.
194IA is applicable in case of resident seller.when its case of nri sec 195 applies.
Hi,
This section is applicable in case seller is a RESIDENT. However, in your case seller is non resident. Hence, Section 195 is applicable in your case
Section 194 IA applies when the seller is resident whereas in your case seller is NRI therefore section 195 applies.
HI,
No TDS in your case as your property value is upto 50 lacs limit. TDS has to be done by Indian resident buyer who buys property of value of at least 50 lacs .
Thanks
Damini
Sec 194IA is applicable for a resident seller. However in case of a NRI, Sec 195 will be applicable.
Hi,
Section 194IA is not applicable since the transferor (i.e Seller) is a non-resident. So, Section 195 applies.
You need to deduct tax at 20% on the entire sales consideration. You can request the Seller to get a Certificate of Lower Deduction if he wants lower tax deduction
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