Ramesh Singh (Consultatnt) 10 August 2012
In case of buying a residential property from NRI, is the buyer (a resident Indian) responsible for deducitng the tax (captial gains) and paying to IT. If this is so, what are the relevant provisions of the IT ACt and what dcouments and precautions are necessary. Will appreciate guidance, best regards, ramesh singh
Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 ) 10 August 2012
the person from whom the property is inherited should have acquired the same in accordance with the foreign exchange law in force or FEMA regulations, applicable at the time of acquisition of the property.
Ramesh Singh (Consultatnt) 12 August 2012
Dear Shr Chary
My apologies if i did not make myself clear. In the process of selling my apartemnt ( i am NRI), the buyer has informed me that he will deduct TDS at 30% from the sales considration since this is required under the IT laws for resident indians who buy a property from NRIs. However, in this forum I noted that buyer has noting to do wiht suhc a deduction. Will appreicate guidnace on this, best regards, ramesh
R RAJAGOPALAN (ADVOCATE) 15 August 2012
Purchaser liable to deduct tax at source for payments to non-resident for purchase of property : Interest payable only up to date of payment by seller : Mrs. Meena S. Patil v. Asst. CIT (International Taxation) (Bangalore) 300 ITR(AT) 317
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