My daughter , a Canadian Citzen has sold her flat in Pune and the final sales registration is expected to be concluded by 30 Mar19. The buyer is expected to deposit TDS of 1 % whereas my daughter is expected to pay in full the Capital Gains Tax before 31Mar19 . For her the TDS rate is 20 % which is same as for Long Term Capital Gains Tax. So should I (I am having the PoA) pay it and tell the buyer not to bother about the TDS? How do I pay it. Which Challan No (280/281/282) to be used . None of these challans have 'Capital Gains' as options. She can not file IT return as was explained by your panel about two months ago. She has a Pan card and no Aadhar.
should the registration of the sales deed not materialize by 30 Mar 19 due to some unforseen circumstances (partial payment has already been done last month thrus agreement to sale , stamp duty has been paid in full ), what implications it will have .
When an NRI sells property, the buyer is liable to deduct TDS @ 20%. In case the property has been sold before 2 years(reduced from the date of purchase) a TDS of 30% shall be applicable.
She can file IT returns for the year and can take benifit of DTA if it is signed with said country of her citizenship.
Then the consideration shall be taxable as per year in which amount is received.
Thanks. How do I pay? Does it have to be paid by 31 Mar since stamp duty has already been paid?
To pay taxes online, login to http://www.tin-nsdl.com > Services > e-payment : Pay Taxes Online or click here on the tab "e-pay taxes" provided on the said website. Provide proper link of e-payment
Step-2
Select the relevant challan i.e. ITNS 280, ITNS 281, ITNS 282, ITNS 283, ITNS 284 or Form 26 QB demand payment (only for TDS on sale of property) as applicable.
Step-3
Enter PAN / TAN (as applicable) and other mandatory challan details like accounting head under which payment is made, address of the tax payer and the bank through which payment is to be made etc.
Step-4
On submission of data entered, a confirmation screen will be displayed. If PAN / TAN is valid as per the ITD PAN / TAN master, then the full name of the taxpayer as per the master will be displayed on the confirmation screen.
Step-5
On confirmation of the data so entered, the taxpayer will be directed to the net-banking site of the bank.
Step-6
The taxpayer has to login to the net-banking site with the user id / password provided by the bank for net-banking purpose and enter payment details at the bank site.
Step-7
On successful payment a challan counterfoil will be displayed containing CIN, payment details and bank name through which e-payment has been made. This counterfoil is proof of payment being made.
If the said transaction is delayed she may incur the tax as per Provisions of income tax Act
It shall be paid on recipt if received after 31 then in next financial year.
Dear Client,
Regulation mandates that on sale of property exceeding Rs. 50 lakhs in India, a tax of has to be deducted on the total sale consideration before making the payment to the seller. The buyer must then deposit this TDS to the Government.
Buyer is required to furnish the TDS certificate to the seller. This is available around 10-15 days after depositing the TDS. The buyer is required to obtain Form 16B and issues this TDS certificate – Form-16B to seller.
The buyer will deduct taxes at source and remit to government, you need not bother about it.
Let she claim refund if applicable at later stage
It can be executed and registered within four months of execution.
Payment of TDS to government account is the responsibility of the buyer hence you need not worry about it.