Capital gains who is the buyer and who the seller

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Peter Pamatthai (Querist)
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25 April 2022 A bank has taken possession of a piece of immovable property from a defaulting borrower through Court. Now Bank is selling the same through Auction. One Mr. X the bidder is the buyer - no doubt. So Mr. X is supposed to deduct tax at 1% from the Seller. Is he to deduct tax from the Bank or from the original owner ? Than you

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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25 April 2022 Deduct tax from the original owner.

CA Puja Sharma

CA Puja Sharma (Expert)
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25 April 2022 Since he is remitting the amount to the bank in this case, so he has to deduct TDS while making payment to the bank.

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Peter Pamatthai

Peter Pamatthai (Querist)
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25 April 2022 THANK YOU SIR FOR CLARIFYING MY DOUBT THE MAIN DOUBT WAS THAT WHEN BANK GETS POSSESSION AND OWNERSHIP , THERE ARE CHANCES FOR THE BANK TO BE THE PRESENT OWNER. MORE THAN THAT ORIGINAL OWNER LOST HIS OWNERSHIP WITH THE COURT ORDER. ALL THESE PUT TOGETHER MAKE THINGS COMPLICATED - THANKS

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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25 April 2022 The bank takes possession of the property towards settlement it's dues. Bank is not owner of the property.
The capital gains tax only payable by the owner of the property hence TDS to be deducted in the name of the owner of the property.

Peter Pamatthai

Peter Pamatthai (Querist)
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26 April 2022 OK Sir Thank you

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