Details

Transactions involving the sale or purchase of immovable property in India attract specific income tax and regulatory obligations. These include capital gains computation, deduction of TDS, reporting of rental income, and compliance with the provisions of the Income Tax Act, 1961.

Tanmeetkaur Arora and Associates offers advisory and compliance services for individuals and entities engaging in real estate transactions, ensuring proper documentation, tax treatment, and timely filings.

Scope of Services

Capital Gains Tax Compliance

• Classification of gains as short-term or long-term based on holding period

• Calculation of capital gains considering indexed cost, acquisition, and improvement

• Advice on exemption eligibility under sections like 54, 54EC, and 54F

• Assistance in filing income tax returns with proper capital gains disclosures

TDS on Property Transactions

• Guidance on applicability of TDS under Section 194-IA (for buyers)

• Preparation and filing of Form 26QB and issuance of Form 16B

• Advisory on TDS applicability for NRIs under Section 195

• Coordination with banks and legal advisors for compliance documentation

Rental Income and Wealth Reporting

• Reporting rental income from residential or commercial properties

• Guidance on standard deductions, municipal taxes, and interest on loans

• Asset reporting under the foreign asset schedule (if applicable)

Property Transactions for NRIs

• Computation of tax and guidance on repatriation of sale proceeds

• Assistance with obtaining lower/nil TDS deduction certificates from the Assessing Officer

• Documentation for FEMA compliance and Form 15CA/15CB (where required)

Applicable Framework

• Income Tax Act, 1961

• Transfer of Property Act

• Relevant TDS provisions and rules issued by the Central Board of Direct Taxes (CBDT)

• FEMA guidelines in case of NRI transactions

Key Considerations

• All computations are supported by legal documentation and sale/purchase deeds

• Accurate tax treatment is ensured to avoid interest, penalties, and scrutiny

• Confidentiality of client financial and legal information is strictly maintained

Our property tax compliance services are designed to assist individuals, investors, and NRIs in fulfilling their tax obligations smoothly while protecting long-term interests.