Resolution for Notice u/s 245/245(1)

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This query is : Resolved

Quick Summary

A homeowner received an incorrect TDS demand notice for a house sale due to the buyer's CA deducting TDS under a single PAN for three co-owners. Despite submitting a response explaining the error and the equal division of capital gains, the issue remains unresolved, and interest is accumulating. The advice given is to approach the Income Tax Officer (ITO) with a professional to reopen the query and get it resolved, as the deadline for revised TDS filing has passed.

Rishi Gangoli

Rishi Gangoli (Querist)

24 July 2024 Hi,

I had received a demand notice towards TDS on my house sale in Jan 2024. The sale was executed in Oct 2022. The demand has been erroneously raised, as there are 3 co-owners for the flat and the TDS was paid in my name only, by the buyer's CA. We have submitted a response against said demand, stating that the TDS shown for Seller OR Landlord of Property is deducted under 1 PAN by buyer but there are 3 sellers as per agreement in the equal ratio. The share of capital gain is equally calculated in all 3 files. This is the reason for lower income in computation as compared to 26AS.

However, we have yet not received any reply/resolution to this. What would you advise me to do? Is there a provision to file a revised TDS for this transaction? I was told by the buyer's CA that the date for the same has been crossed already.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

25 July 2024 You can check the demand status in your e-filing profile after login.

Rishi Gangoli

Rishi Gangoli (Querist)

25 July 2024 Yes, have been checking it periodically. However the status remains as is. The interest keeps increasing though.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

25 July 2024 So it is open and demand not cancelled.

Rishi Gangoli

Rishi Gangoli (Querist)

25 July 2024 Yes. Wanted to understand how to approach this now.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

25 July 2024 You had already replied to the demand, which was not justified properly. Now you can only approach your ITO with well experienced professional to reopen the query & get it resolved.

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