Question ID : 31646

TDS U/S 195

A property has been purchased by a buyer from a seller who at that time of sale was living and employed in India and did not disclose to the seller that he was a NRI. Buyer deduced tds@1 instead of 20 And Now income tax has served a Notice us 200(1A) on buyer stating reasons for short deduction of tds. Since Buyer was unaware of the fact that the seller was a NRI and accordingly he deducted tds@ 1. All title deed, bank account, aadhar etc mentions Sellers residing in India. Moreover, NRI has duly filed his return and declared capital gain and paid tax. Is any case law there or can it be justified that buyer is not assesee in default as he had no knowledge of the same

Answer ID : 68662

you are paying money in india and remitting the same out of India based the document like PAN card, adhar card. You are not assesee in default.

Answer ID : 68738

The transaction is based onBank Account, Aadhar etc which mentions seller was resident. Moreover the NRI has filed his return, declared capital gain and paid tax. Hence may not be treated as assessed in Default. Thanks

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