This NRI was able to save upfront TDS deduction which was a Capital Loss – Check how

NRI taxation is a bit tedious as there are less cases that you relate to. Like in one scenario where any Non Resident Indian wants to sell house and is making a loss on the transaction gets worried while researching the details about TDS.

One of my friend recently sold his property in his hometown in Uttar Pradesh. The property was a depreciating asset for him. Lets not talk about the reason, but the important point was that he was selling it for less than how much he purchased that for. Initially he was in dilema if the TDS will be deducted upfront and later needs to be claimed from Income Tax department or if there is any way to avoid paying that money. Here is what he did :

1. Before making the sale, he applied for form 13 on Income Tax India Website.
2. To do so, he logged into his Income tax portal
3. After successful login the steps invole to go to e-File → Income Tax Forms → File Income Tax Forms
4. Selection of the Section 195 that refers to Lower / Nil TDS on sale of immovable property.
5. Information related to transaction and Seller / Buyer information is needed, which involves :
   • PAN Card and Residential Status of Seller (NRI in his case)
   • Property type and Address (Residential in his case)
   • Expected sale value.
   • Name and PAN card of buyer.
6. After this informaiton the following documents should be uploaded :
   • Purchase deed of the property.
   • Indexed cost.
   • Computation of Capital Loss (A simple statement provided by a Chartered accountant increases further scrutiny)
   • ITR (Last Financial Year)
   • Proof of residential status (Passport / Visa / OCI)
   • PAN Card copy.
7. Submission of the provided information.

It usually takes 2-3 weeks to complete the case you submitted. You will get a TDS certificate which you need to give to the buyer and buyer can legally pay you full amount without holding the TDS.

Important

The submission of form 13 has to be done before selling the property. If you have sold the property then still you can ask for the refund of the TDS amount while filing your Income tax return.

Feel free to comment below if you have any questions.

Summary

Article Name

NRI personal experience where he saved the TDS while making capital loss on property sale.

Description

The submission of form 13 has to be done before selling the property. If you have sold the property then still you can ask for the refund of the TDS amount while filing your Income tax return.

Author

Urbanmadam.com

Publisher Name

Urbanmadam