Tax liability on sale of property by nri
MOHAMED FIROZ
(Querist) 19 November 2014
This query is : Resolved
My friend, 64 years old, an NRI sold his house on registered document for Rs. 1 crore, one week back only. The buyer paid him the entire amount by RTGS without any deduction for tax purposes. The amount has been deposited in the NRO a/c. His capital gains tax comes to around Rs. 19.50 lakhs after cost indexation deductions.
Is it mandatory to pay the TDS before the sale? If so what is the correction to be done now? When should he pay his tax liability of 19.5 lakhs? Is his total tax to be paid is 20% on capital gains or 21% including the 1% on TDS before registration? Can he pay his tax liability under self assessment at the end of March 2015?. Should he pay Advance Tax now itself?
Sailesh Kumar Shah
(Expert) 19 November 2014
Is it mandatory to pay the TDS before the sale?
Answer : yes
If so what is the correction to be done now?
Answer: refund 1% amount to the buyer and request him to issue tds certificate.
However, it is the statutory duty of buyer not seller.
Is his total tax to be paid is 20% on capital gains or 21% including the 1% on TDS before registration?
Answer: 20%
Should he pay Advance Tax now itself?
Answer : yes, before 15th dec, and 15th march.
