1% TDS aplicability when purchasing property by DRT

This query is : Resolved

Rao Pyla (Querist)
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18 October 2023 I have purchased a property of worth 90 Lkhs from DRT Auction.As per TDS On Sale Of Property above 50 Lakhs i have to deduct 1 % tax and deposit to IT department on behalf of Seller.Banker(DRT also) is not allowing to deduct 1 % tax from auction price.

is there any exemptions for 1% income tax deduction under TDS On Sale Of Property by DRT Court.

Thanking you in advance.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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19 October 2023 No exemption deduct 1% in the name of the owner of the property.

Rao Pyla

Rao Pyla (Querist)
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19 October 2023 Thanking you Sir for your quick reply,

here the owner means Bank(DRT)/Defaulter.plz clarify.

Iam paying to the bank as per E-Auction conducted by DRT.

Some sources are telling that in the public auction conducted by DRT.It is not required to pay the 1%

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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19 October 2023 It's only defaulter. You can also not to deduct if objected by bank.

Rao Pyla

Rao Pyla (Querist)
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20 October 2023 Thanking you sir,

But SRO not registring site in my name without paying 1% TDS.

as per IT Act 194-IA section also it is the responsibility of the purchaser to pay the 1% IT dept.9for above 50 lakhs transactions)

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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20 October 2023 In such a case of the bank is not acceptable for 1% reduction you have to bear the 1%.

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