Understanding Option Chain

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Karthik R
Karthik R
7 years ago

Hi Nitin,
Thanks for the insightful post.
1) NRI seller has approached Income Tax office and the latter is seeking buyer’s TAN for issuing a lower deduction order. In case of joint buyers say, husband & wife, do both need to apply for a TAN?
2) In case, its sufficient if one of them has TAN, then is there any additional documentation (authorization letter etc.) required for husband to make deductions on behalf of his wife (joint buyer) for each joint seller?
3) Given this is a one-off sale transaction, do we cancel the TAN once the deal is complete? Are there any future implications for the joint buyers, if they retain the TAN post the sale transaction (i.e. once all TDS deductions have been duly made)?

Regards,
Karthik

Nitin Bhatia
Nitin Bhatia
7 years ago
Reply to  Karthik R

1. Yes. Both buyer’s should have TAN> Normally IT department don’t ask for buyer’s TAN.
2. It is not feasible
3. You can cancel or if you retain then also NO issue. I suggest you to retain for sometime.

Nadeem
Nadeem
7 years ago

Hi Nitin,

What are the tax penalties if in case seller has provided NIL Tax deduction certificate(0%) and the buyer has not filed NIL TDS Return ?

Thanks

Nitin Bhatia
Nitin Bhatia
7 years ago
Reply to  Nadeem

There is no clarity on this subject. In my opinion, you file it now and wait for further communication from IT department.

Ashwinikumar
Ashwinikumar
7 years ago

hi Nitin… firstly, let me say your website is really helpful.

Secondly, when I have a question about the TAN application. I am not a resident of Bangalore and my PAN AO is in Mumbai. For applying to TAN, do I need to use the same AO as PAN or use the AO of Bangalore where I am doing the transaction? What happens if I apply to wrong AO?

Nitin Bhatia
Nitin Bhatia
7 years ago
Reply to  Ashwinikumar

PAN AO will be as per records IT records i.e. of Mumbai. Your application might not be processed in case of wrong AO details. In ideal scenario, the Bangalore AO should refer your application to your AO in Mumbai but i have my own doubts.

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