An Overview and Need for Lower Tax/TDS Deduction Certificate (LTC):

A Lower Tax/TDS Deduction Certificate (LTC) is issued by the Indian Income Tax Department to Non-Resident Indians (NRIs) who are selling property in India. This certificate allows for a reduced rate of tax deduction at the time of property sale.

Typically, when an NRI sells property in India, the buyer is required to deduct TDS (Tax Deducted at Source) at the applicable rate, which can range between 20.8% to 23.92% depending on the sale price of the property, before making the payment to the NRI seller. However, NRIs can apply for an LTC to lower the TDS rate.

Eligibility of Filing Lower Tax/TDS Deduction

Non-Resident Status

The seller should be an NRI under the Indian Income Tax Act.

⇒ Tax Compliance

The NRI should have complied with all Indian tax laws.

Process to Obtain Lower TDS Deduction Certificate:

Application Submission

The NRI needs to apply for the LTC by submitting Form 13 to the Assessing Officer of the Income Tax Department. This form requests a lower TDS deduction certificate.

Justification for Lower TDS Rate

The application should include reasons justifying the need for a lower TDS rate. This could include computation of capital gains, tax liabilities, etc.

Assessment by Tax Authority

The Income Tax Officer reviews the application and supporting documents to determine the appropriate TDS rate.

Issuance of Certificate

If the assessing officer is satisfied with the application, they issue the Lower TDS Deduction Certificate specifying the reduced rate at which TDS should be deducted by the buyer.

Providing Certificate to Buyer

The NRI should provide a copy of the LTC to the buyer before the property transaction. This enables the buyer to deduct TDS at the reduced rate mentioned in the certificate.

TDS Deduction and Deposit

The buyer is responsible for deducting the TDS amount from the sale proceeds payable to the seller at the rate mentioned in the Lower Tax Certificate. This deducted amount needs to be deposited by the buyer.

TDS Return Filing

Subsequent to depositing the TDS amount, the buyer should file TDS return form 27Q with the Income Tax department. This filing is crucial for linking the deposited TDS amount with the PAN of the Seller. This linkage enables the seller to adjust or claim a refund of the deducted amount while filing their Income Tax Return.

Form 16A

The seller should request Form 16A from the buyer. This form serves as verification that the buyer has correctly filed the TDS return, displaying the buyer’s PAN card information. The buyer is obligated to issue Form 16A to the seller within the stipulated timelines.

Documents Required

1. Sale agreement

2. Details of the property

3. Purchase Deed/ Allotment Letter/ Gift Deed

4. Proof of NRI status

5. PAN card of Seller and Buyer

6. TAN card of Buyer

7. Address proof of Buyer and Seller

8. Power of Attorney (If applicable)

9. Tax payment receipts (if any)

Details Required

1. Area of Property

2. Mobile Number of Buyer and Seller

3. Email Id of Buyer and Seller

Process of Company Registration

COMPLIANCESPRO has a separate team which is expert in completing this complex process very easily and helps you to get the company registered within 3 daysonly in a very reasonable price.

Documents & Details required for company incorporation in very simple terms
Documents Required
  • Bank Statement
  • Electricity Bill
  • Telephone Bill
  • Mobile Bill
  • Passport
  • Driving License
  • Voter’s Identity Card
  •  Electricity Bill or
  • Telephone Bill
  • (Not older than 2 Month)
Details Required
  1. Company Name
  2. Company Email Id and Phone No
  3. Business Activity
  4. Directors Name
  5. Shareholders Name
  6. All Directors and Shareholders Details:
  • Email ID and Mobile Number
  • Place of Birth (District & State)
  • Nationality
  • Qualification
  • Current Employment: Salaried/ Businessman/ Other
  • Duration of Stay at Present Address
  • Capital Amount
financial accounting

Service Deliverables

⇒ Support for completing the necessary documentation required for the application process.

⇒ Thorough preparation and submission of the application to the Central Government on your behalf.

⇒ Persistent follow-ups with the Income Tax Department to expedite processing.

⇒ Addressing queries from the Income Tax Department and furnishing any additional documentation as requested.

⇒ Provision of Form 13 for the Lower Tax/TDS Certificate application.

⇒ Facilitation of TDS deposit with the Income Tax Department.

⇒ Prompt filing of TDS return to ensure seamless linking of deducted tax with the Seller’s PAN.

⇒ Timely issuance of Form 16A to the Seller.


Why Choose Compliances PRO

After Sale Services:

The true measure of a service provider’s reliability often reveals itself only after payment, as some fail to honour their commitments. However, we stand in stark contrast to this. We offer complimentary consultancy for one year following the assignment’s execution. Whether your entity encounters issues or seeks guidance-related to services acquired from us or otherwise-we remain accessible. Our comprehensive services cover direct taxation, indirect taxation, Labour laws, company compliances, GST, and more, eliminating the need to engage multiple service providers.

Free Yourself from All Compliances:

We help entrepreneurs to grow their business by taking their burden of all kinds of compliances and enabling them to focus and invest their time only on own business and grow it more efficiently and effectively instead of finding different person for different compliances.

Experienced and Upgraded Team:

We are an organized team of experienced Chartered Accountants (CAs), Company Secretaries (CSs), Merchant Bankers, Accountants, Industrial & Labour Laws Consultants, FEMA Consultants, Transfer Pricing (TP) Consultants, among others, duly supported by a pool of trained staff spread all over India, to provide high-quality services. Our team members are always updated with the latest changes and new laws, rules, and regulations. A regular session is taken with the team to update them with all the compliances and new things which can benefit the client in getting more benefits in terms of monetary and non-monetary benefits

Segregation of Duties:

We assign different kind of works to different experts instead of allotting all different kind of works to the single person which provides the accuracy in the work and benefit of expertise.

Partners instead of Employees:

Members of the team are paid on a shared basis for the work assigned to them instead of a fixed salary for efficiency, effectiveness & motivation while execution of work of all the clients.

Data Storage on Cloud along with Server:

There can be any kind of uncertainty in the office area, systems where your data is stored. But that uncertainty should not result in the loss of even a small amount of data of client as it is the most crucial for them. Hence your data is always stored on the cloud to avoid any kind of loss, hacking, misuse, etc. in case of any kind of uncertainty

Total Security Antivirus in Server:

As the use of IT services has increased, so has cybercrime and hacking. To ensure the security of our clients’ data and our own systems, we employ Total Security antivirus on our servers, safeguarding against viruses, ransomware, and various other cyber threats.

Modern approaches instead of Traditional ways:

We have a set of standards and rules which all the team members need to follow while executing any work. This helps us to provide quality services to the clients and avoid any kind of error. Hence, our team executes the work allotted by following a set of standard rules and SOP instead of traditional manual ways.

Upgraded Licensed Software’s:

Work are performed through automated software’s (only Licensed) which auto identify the errors, omissions, or non-compliances instead of paper working or working directly on the sites. Few examples of the software are- Compu Tax for Income Tax, Speqta for GST compliances, Compu TDS & TCS for TDS & TCS compliances, Licensed Microsoft Office 365 for office applications, etc.

Record Maintenance on Behalf of the Client:

Government departments have the right to ask for the records and documents from the assesses. Different time periods are prescribed by different laws up to which these records can be asked for. Apart from this, a client can also require it for its personal needs like analysis, decision taking or other purposes. Hence, records of all the compliances required by law or client to be kept by the client are maintained by us on behalf of the client to assist them to produce the same if asked by department or any statutory body or for its personal use.

Online Service:

Our aim is to save the maximum time and money of the client. Hence, we deliver fast and reliable services, mostly in an online environment by taking all the documents via online channels like WhatsApp, Gmail, etc. requiring no need to unnecessarily visit the offices.