Dear Experts,
One of my client who is an NRI sold property to a person resident in India without disclosing that he is an NRI. Subsequently the buyer deducted TDS u/s 194IA at 1% and remitted the balance to the seller. The sale happened in the month of May 2015. Now, the client wants to stay in India for a period of 182 days or more so as to get the position of Resident Indian and avoid tax. He, being an Indian Origin will be able to avoid Income tax consequences by staying post transfer in India? or whether we have to consider only individual status prior to transfer taking place.
Kindly help me solving the issue.
NRI Seller Seeks Tax Residency Change to Avoid Implications; Status Assessed in Transfer Year per Section 194IA. An NRI client sold property in India without disclosing their status as an NRI. The buyer deducted TDS at 1% under section 194IA and paid the remaining amount to the seller. The client now seeks to stay in India for 182 days or more to qualify as a Resident Indian and avoid tax implications. The query asks whether staying post-transfer impacts tax status or if only the status before the transfer is relevant. The response suggests that the residency status for tax purposes should be assessed in the year the transfer occurred, not based on future residency. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
