The assessee purchased a residential flat from a NRI ("seller"). The AO noted that as per section 195, the assessee ought to have deducted tax on the sale consideration before making payment to the seller, however, assessee contended that he was liable to pay the tax on the basis of capital gains. Rejecting assessee's contentions, AO initiated proceedings under sec. 201(1), treating the assessee to be an assessee-in-default. The CIT (A) upheld the order of AO. On appeal, the Tribunal held in favour of revenue - It held that the section 195(1) required the assessee to deduct tax on entire sale consideration. If the assessee considered otherwise, section 195(2) required him to make an application to the AO to determine the appropriate proportion of consideration on which tax should be deducted, but the assessee failed to do so. Thus, the finding of AO that quantification of the TDS under sec. 195 ought to be made on the entire sale consideration was correct and it couldn't be made on the basis of capital gains. Therefore, it was held that AO had rightly raised demand under sec. 201 and issued notice of demand under sec. 156 - SYED ASLAM HASHMI v. ITO [2012] 26 taxmann.com 6 (Bangalore - Trib.) |
Thursday, 11 October 2012
Unless Sec. 195(2) clearance is obtained, tax has to be deducted from sales consideration and not just from capital gains
Subscribe to:
Post Comments (Atom)
Can GST Under RCM Not Charged and Paid from FY 2017-18 to October 2024 be Settled in FY 2024-25?
In a recent and significant update to GST regulations, registered persons in India can now clear unpaid Reverse Charge Mechanism (RCM) liab...
-
Particulars in Part 1 and Part 2 of Step-2 of registration form are required to be exactly the same as reported in the TDS statement. Plea...
-
A new website launched for TDS related matters www.tdscpc.gov.in TRACES – T DS R econciliation A nalysis and C orrection E nabling S yste...
-
When India introduced the Goods and Services Tax (GST), it created a big change in the way companies handle their taxes. Earlier, business...
-
In this post, I will discuss Secretarial Standards related to Proxies under SS – 2. Right to Appoint: A Member entitled to attend and ...
-
What is a Digital Signature? Answer: A digital signature authenticates electronic documents in a similar manner a handwritten signatur...
-
Companies often give gifts to their employees to boost morale, celebrate achievements, and promote a positive work environment. Such gifts ...
-
LEASE-DEED (A brief Introduction) Lease defined. A lease of immovable property is a transfer of a right to enjoy such property, mad...
-
Section 150 of the Finance (No. 2) Act, 2024, specifies that taxpayers will not receive refunds for taxes paid or input tax credits (ITC) re...
-
This Tax Alert summarizes the recent advisory issued by Goods and Services Tax Network (GSTN) on hard-locking of auto populated values in...
No comments:
Post a Comment