Property tax refund

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Querist : Anonymous

Querist : Anonymous (Querist)

12 October 2014 My parents are selling a house. For the deed amount, as per 194IA, the buyer is to deduct 1%

I have two questions pursuant :

1. The house is a joint property of my parents and my mother has no independent source of income. Whose PAN (my mom or dad or both) should the TDS be shown on?

2. We are going to reinvest the entire amount within 2 months into a new property (as such our long term capital gain is supposed to be 100% exempt under section 54). So how do we get the tax refund and how long will this refund process take?

Please let me know on this as early as feasible.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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13 October 2014 the buyer should deduct TDS against both owner's PAN. However, if the mother was just legal owner and your father was the beneficial owner, then the whole of capital gains will accrue to him.

for refund of taxes, you shall have to file the tax return...

Querist : Anonymous

Querist : Anonymous (Querist)

13 October 2014 What do you mean by filing tax return? Can you give some procedural clarity on the steps? I understand the buyer will fill form 26aq and submit the tds and furnish a form 16b to the seller. What steps should the seller take thereafter to claim this back under section 54?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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13 October 2014 as I said earlier, file the tax return to claim refund of excess tax credit...

Querist : Anonymous

Querist : Anonymous (Querist)

13 October 2014 Ok. Any sense on the timelines for the refund process? Does it take >1year?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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13 October 2014 the returns are processed once you file. It takes maximum one year if not picked for scrutiny.

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