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Tds from sale of property

29 June 2016

Hello All,

I would really appreciate if someone can help me here.

I want to know the following. I sold one property in the finacial year 2014-15 and made a Long term capital loss of 10 Lacs and carried it forward to next fiscal year i.e. 2015-16. I also sold one more property in Financial year 2015-16 and made a profit of 8 Lacs. As this time property transaction was more than 50 lacs, buyeer deducted the TDS of 60 Thousand.

While filing the return i am summing up the Long term loss from Prev year and Long Term Gain from this year. Overall i am still under the Long term loss which i can carry forward to next year. My question is, can i ask for refund of TDS which buyer has deducted as overall i made no profit out of these transactions.

Regards, Vinay

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12 Replies

CA Shweta Purswani (Practicing Chartered Accountant ) (417 Points)
Replied 29 June 2016

Yes, you can claim full refund if your Total Taxable income for the said year is below exemption limit. The refund would not be based upon the gain through this transaction but it would take into consideration your Net Taxable Income

1 Like

CA Harshal Totla (Chartered Accountant) (2229 Points)
Replied 29 June 2016

Sir tds has nothing to do with your capital loss. If your total income is below basic exemption limit or total tax liability for the A.Y. is less than the tds made then you can claim the balance amount as refund by filing your return.

Vinay somani (CA, CS) (Assistant Manager-Accounts) (549 Points)
Replied 29 June 2016

Yes Vinay,

U can claim TDS as deducted in ur name.

there is no provision for one to one correlation between income and tds.

u can adjust last year loss with current year profit. and u can claim refund of TDS.

1 Like

Vinay Katiyar (DM) (81 Points)
Replied 29 June 2016

Hi Vinay,

Thank you so much for your prompt response.

Just one additional question, In case i make any gains from LTCG and i also re invest in property can i still claim the refund of the TDS which buyed of the property deducted during transaction ?

Regards, Vinay

Vinay Katiyar (DM) (81 Points)
Replied 29 June 2016

i am talking about 1 percent TDS which is deducted by the buyers for property transaction above 50 lacs as part of section 194i

regards Vinay

prem Tekriwal (director) (22 Points)
Replied 30 June 2016

As clarified in earlier replies claim for refund of TDs depends on ur taxable income only

Vinay Katiyar (DM) (81 Points)
Replied 30 June 2016

Hi All,

I think i am not able to put my question clearly. This is not about the regular TDS which has to be refunded when the Taxable income is below exemption.

I am asking about TDS which is deducted for property transaction avove 50Lacs.

1. can i claim a refund of the TDS is my Long term gain is still negative after combining the gains from previous fiscal year.

regards, Vinay

Vinay somani (CA, CS) (Assistant Manager-Accounts) (549 Points)
Replied 01 July 2016

YES Dear,

U can claim such tds as refund.

Vinay somani (CA, CS) (Assistant Manager-Accounts) (549 Points)
Replied 01 July 2016

U can calim this

altough this is TDS on Property but ultimately capital gain on sale of such property is also included in ur Income Tax Return. doesent matter that u have capital gain or loss on such transaction u are allowed to get refund of TDS

Vinay somani (CA, CS) (Assistant Manager-Accounts) (549 Points)
Replied 01 July 2016

U can calim this

Divyanshu Jain (1 Points)
Replied 04 July 2016

What would be the process of deducting Tds in following case:
A,B and C are buying property valuing 60 lakhs from D.....and this amount of 60 lakh is financed by bank on A,B,C names

Vishal Goel (Chartered Accountant) (1688 Points)
Replied 04 July 2016

Hello @ Mr. Jain

In case there is more than 1 buyer and the individual purchase price of each buyer is less than Rs. 50 Lakhs, but the aggregate value of the transaction exceeds Rs. 50 Lakhs, Section 194IA would be applicable and the TDS on Property would be required to be deducted and deposited with the govt before the due date.

In case of more than 1 buyer/ 1 seller, Form 26Q has to be filled in separately for each buyer-seller combination.