How is tds on sale of immovable property treated

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Sandeep (Querist)
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30 December 2013 Hello Experts,

I have a query relating to the TDS on sale of immovable property. The sale consideration is over Rs. 50 L and I am aware that the buyer will deduct 1% as TDS and will need to pay this online.

However what is not clear to me is how will the seller treat this? Can this be adjusted against long term capital gains tax or is there any provision by which i can receive a refund from the IT? For example from the sale proceed I purchase another immovable property of similar value how can the tax already deducted be treated? Will I be eligible for a refund?

Secondly what if the buyer does not provide the certificate of TDS even though he deducts this?

Many thanks.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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30 December 2013 1. 1% tds can be adjusted against capital gains tax payable thereon.

2. Buyer is supposed to give form 16B. If not, transactions will be reflected in form 26AS of the seller and on the strength of that the seller can seek credit / refund of the said TDS.

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