It depends on how you account the amount.
If you are accounting this money towards registered sale deed then the necessary TDS as per law
Do I have to deduct TDS on purchase of pagdi system tenancy
I have purchase room in pagdi system & given advance for room value of room is 51,00,000/- i would like to know that tds is applicable to me,
Asked 8 years ago in Taxation
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9 Answers
TDS would be applicable to you as consideration is more than Rs 50 lakhs . Tax is deductible at the rate of 1% of the consideration payable to a resident transferor
2) It is the responsibility of the buyer to deduct the tax from payment to seller and deposit the same in the government treasury. Where the transaction is less than Rs 50,00,000 /-, the liability to deduct tax at source will not be applicable.
3) If a valid PAN is not provided by the seller, the tax rate would go up to 20%.
4) Online payment u/s 194IA is mandatory and the tax should be deposited on challan-cum-statement on Form No.26QB. Form No 16B (TDS Certificate) will be issued by the deductor within fifteen days from the due date of depositing tax.
There is no provision in law to buy a tenancy or pagdi system property by a registered sale deed.
If there is no registered sale deed then this transaction cannot be legally enforceable.
Buying a property on pagdi system cannot be termed as legal purchase.
So there is no question of TDS for unaccounted transaction.
1. TDS is deducted on the sale value.
2. By paying pagdi, you ae not buying the room but acquiring tenancy for the same.
3. Strictly speaking, TDS is not deductable on payment of pagdi which is considered as non-refundable advance payment before renting the room.
1. according to Isha kocher vs Dellite delux pvt ltd 2001 SCC the court has held that TDS is applicable on pagdi house.
As i am British Passport holder with OCI Card & filling Income Tax return as a Residence individual so in ROC form MGT 9 Annexure there is Category of Shareholder having column INDIAN & FOREIGN so which column i have to file my name whether Indian or foreigner
Asked 8 years ago
you are british passport holder .
you have to fill your name as foreigner
As i am filling my income tax return in Residence indian Status & Residing in india for more than 10 years.
Asked 8 years ago
You can file the return as a resident Indian residing in India continuously during the assessment period
The resident Indian is the correct status
1) A person would be a RESIDENT of India for income tax purposes if
He/She is in India for 182 days or more during the financial year
OR
If he/she is in India for at least 365 days during the 4 years preceding that year AND at least 60 days in that year.
2) you are holding British passport and are citizen of UK . . hence you have to fill in your name as foreigner