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Refund from real estate agent with tds

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This query is : Resolved

MANOHAR SEERVI (Querist)
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25 July 2012 I need clarification on Income tax liability in this case. Mr. A purchased a house from builder thru a Agent and paid full amount to Builder. Agent got commission from Builder and Agent has shared part of his commision to Mr. A after deduction of Tax (TDS) on this commission amount.

My Query is :-
Whether MR. A is liablae to pay tax on amount received from Agent if yes then under which head of income ?
Or no Tax is payable but total cost of aquisition of house will be reduced by this refund amount ?
How to show this amount in Income tax return ?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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25 July 2012 The amount received from the Agent is not taxable in the hands of A.
.
In this case he can reduce the Cost of Acquisition by the amount received back from the Broker/Agent.
.

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