Dear All ; I am in the process of buying a property from an NRI.I have been given a TDS certificate from seller , in a letterhead of Income tax Department stating following facts : Subject: Certificate u/s 197 for PAN : <<Seller PAN NO >> Deductor(s) with TAN/PAN (as per column 3) is/are hereby authorized to make payment or credit the amount under section (as per column 5 of the table below) to the extent (as per column 6) after deducting tax at the rate (as per column 7, excluding education cess/ Surcharge as applicable) to, or as the case may be to the account of << Seller Name >>, <<Seller India Address >> ( Seller PAN ) As per Table details below: Column - 2 - 10 Digit Certificate No , Column - 3 - My TAN , Column - My name , Column - 4 - Section 195 , Column 6 - Figure of Sale Value , XXXXXXX , Column - 7 - Certificate rate , Column -8 - Valid From , Column - 9 - Valid till... Certificate(s) is/are non-transferable and valid for applicant PAN -<< Seller PAN>> for sums which are to be received or receivable, whichever is earlier between the period as per column 8 and 9, unless it is cancelled by the undersigned under intimation to respective TAN(s)/ PAN(s) before that date. This is a computer generated document hence no signature required. My Questions are following : 1) Is this Sufficient to consider the approved TDS rate that is applicable for this sale transaction from NRI ? 2) The rate is much low compared to what has been mentioned as 20% or 30 % as rates in the slab descriptions . Is it OK ? 3) Certificate does not mention specifically anywhere this is for the home sale transaction other than the transaction value (which is right) ...Is it OK ? 4) Can I consider this is all correct for me to go ahead and do the transaction with NRI me as a buyer that I am supposed to DO to deduct the TDS as per this certificate rate ? 5) Is there any way to check the authenticity of this document ? Looking forward to answers and any added guidance...Thanks.
If it's a certificate issued under 197 then he would have requested for lower deduction of TDS and Ito would have approved it.
There should be a signature of income tax officer or it should be digitally signed.
If you have any issue then ask the assessee to sign it again.
If you want I can help you seperately.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you
1. Yes, it's sufficient.
2. It's ok.
3. Yes
4. Yes, if it is on the letterhead of income tax
5. You can check with the concerned assessing officer
Hi,
1) Yes
2) Yes
3) Yes
4) Yes but collect all the documents from the seller
5) On website of department
Dear Sir,
Hope you are doing well !!
1.Yes, it is sufficient.
2.Yes, it is ok.
3.Yes, it is ok.
4. Yes.
5.You can check either through department website or personally with assessing officer.
Hi
1.Yes
2.Yes its ok. Certificate under sec 197 is issued for TDS deduction at lower rate or nil rate.
3.it is ok.
4.Yes ,buyer have to deduct tds as per certificate rate.Keep it for future reference.
5.Yes ,it can be checked with department officials.
Hope it helps
Hi,
1. Yes.
2. Ok
3. Ok
4. Yes.
5.Online website.
