A property purchase is a mixed feeling for the buyers. Normally, the buyers are super excited at the time of first property purchase. They just want to close the deal asap. Therefore, the probability of blunder is high during first property purchase. Recently, i asked one of my clients to share some property related documents. He emailed me 2 documents. He told me that he received only these 2 documents besides a copy of sale deed and couple of other documents submitted for a home loan. Now he is struggling to sell the property as he bought it 8 years back. I casually asked him, was this his ... Read More
How to deduct TDS through Home Loan?
One of the most common problems faced by a buyer is How to deduct TDS through Home Loan?. To deduct and deposit a TDS is the sole responsibility of a buyer. Sometimes a bank or HFC help the buyer and many a times they refuse. Currently, there is no standard process on how to deduct TDS through Home Loan. I come across unique and strange cases in this regard. Most of the times banks or HFC avoid hassle to deduct the TDS and put the entire onus on a buyer. The banks take advantage of a buyer if he or she is not aware of the rules and regulations in this regard. Therefore, it is critical for a ... Read More
Imp points on Power of Attorney by NRI
A property transaction through Power of Attorney executed by NRI calls for extra checks/scrutiny. A sale deed can be declared NULL and VOID because of a small mistake or error in the execution of Power of Attorney by NRI. Sometimes these errors/mistakes are intentional and most of the times unintentional. In recent past, i came across multiple cases wherein a property transaction was challenged based on error/mistake in the execution of Power of Attorney (POA) by NRI. In many cases, the status of NRI is being concealed by his lawyer/CA in POA to avoid TDS. An NRI executing POA in India cannot ... Read More
TDS Filing – 7 Common Mistakes
TDS Filing in India is considered to be very tedious task. Trust me it is not. With the introduction of section 194IA w.e.f 1st June, 2013, now it is mandatory to deduct and deposit TDS for any property transaction over Rs 50 lakh. I shared the process of TDS filing in my post How to deduct TDS on Property Sale u/s 194IA. It is also mandatory to deduct TDS u/s 195, in case of NRI Seller. You may check my post, How to deduct TDS on NRI u/s 195? for more details. With reference to my these posts on TDS filing, i receive lot of queries on error / mistake in TDS filing. Main reason is people are ... Read More
How to Deduct TDS on NRI Under Section 195?
In continuation of our discussion on TDS under section 195. In this post, we will understand How to Deduct TDS on NRI Under Section 195 by resident Indians?. As per Income Tax Act 1961, Any person responsible for paying to Non Resident or Non Resident Indian, neither being a company nor being a foreign company, of any interest or any other sum chargeable under the provisions of Income Tax Act, 1961 (Excluding income chargeable under the head "Salaries"). Any such payment shall at the time of credit of such income to the account of payee or at the time of payment through any mode i.e. Cash, ... Read More
How NRI’s can lower TDS on Property Sale?
In my previous post on NRI's and TDS on sale of property we discussed basics of TDS on Property Sale by NRI. In this post we will understand how my NRI friends can lower the TDS on Property Sale. Before you decide to go ahead with property sale following 2 points should be considered 1. Type of Capital Gain from Property Sale i.e. Short Term Capital Gain or Long Term Capital Gain 2. Whether i am willing to pay capital gain tax or would like to save capital gain tax by Re-investment of capital gains Once these 2 points are clear then we are ready for property sale in India. Let's discuss the ... Read More