Thursday, 11 June 2015

NRI selling Property in India or Indian Buyer buying Flat/Property from Non-Resident:TDS , TAN implications

The obtaining of TAN creates a compliance burden for those individuals or Hindu Undivided Family (HUF) who are not liable for audit under section 44AB of the Act. The quoting of TAN for reporting of Tax Deducted at Source (TDS) is a procedural matter and the same result can also be achieved in certain cases by mandating quoting of PAN especially for the transactions which are likely to be one time transaction such as single transaction of acquisition of immovable property from non-resident by an individual or HUF on which tax is deductible under section 195 of the Act. To reduce the compliance burden of these types of deductors, it is proposed to amend the provisions of section 203A of the Act so as to provide that the requirement of obtaining and quoting of TAN under section 203A of the Act shall not apply to the notified deductors or collectors.
This amendment will take effect from 1st June, 2015
However, as on today i.e.11.06.2015, the CBDT has not yet notified latest Rules of Income-tax. The section 203A for Finance Act, 2015 has been amended and refers to Rules. Thus, we wait till Rules are notified by CBDT in this regard.
CA Niraj Mahajan
+91 9860092752


  1. Dear Sir,
    Has there been any update on this? Are the Rules notified?

    1. No, the Rules are not notified yet. Hopefully, after Budget 2016 the Rules will be notified.
      Currently, the regular rate of 20% TDS is applicable on LTCG.Or else lower deduction certificate can be applied for. The buyer needs to apply for TAN. Please revert if you still have queries

  2. Sir ..hv the rules been notified.......

    1. Unfortunately not yet. Income Tax Rules 2015 as a whole never got notified.