Tds on immovable property
Querist : Anonymous
there in case another person also should deduct tds 1%
or only purchaser should deduct 1% tds
Querist : Anonymous
other person has deducted tds @ 1%
so no need to deduct tds 1% by builder
am i correct .....
Querist : Anonymous
and sir purchaser will file form 26QB i think den seller name automatically will appear
Querist : Anonymous
refer this link
also for detailed discussion check this link
agent also doing the work on behalf of the owner. so but will deduct the tds.
Querist : Anonymous
Tds transcation is between buyer and seller...
---
### Scenario Recap:
* Seller gives **power of attorney (POA)** to an agent (builder) to sell his property.
* Buyer directly pays sale consideration to the agent.
* Buyer deducts TDS @ 1% under Section 194-IA on the sale amount.
* Agent then pays the amount (less TDS) to the seller.
* Question: Does the agent also need to deduct TDS? Or only buyer?
---
### Key Points:
1. **Who deducts TDS on sale of property?**
* As per **Section 194-IA**, the **buyer is liable to deduct TDS @1%** on the sale consideration if the value exceeds Rs. 50 lakh.
* Only one TDS deduction is required, and it must be deducted by the buyer.
2. **What if payment is made via an agent/POA holder?**
* The **agent is considered a representative** acting on behalf of the seller.
* The **agent does not deduct TDS** on the amount paid to the seller.
* The agent should **obtain a certificate or acknowledgment from the buyer that TDS has been deducted** to avoid confusion or disputes.
3. **Buyer’s responsibility:**
* Buyer must deduct TDS and **file Form 26QB** (Challan-cum-statement).
* Buyer receives **Form 16B (TDS certificate)** issued in the name of the seller automatically after filing 26QB.
4. **Seller’s position:**
* Seller can claim the TDS amount deducted by the buyer against his tax liability.
* Seller should ensure buyer has deducted and deposited TDS properly.
---
### Summary Table:
| Party | TDS Responsibility | Remarks |
| ------------------ | ------------------------------- | --------------------------------------------------------- |
| Buyer | Deducts 1% TDS under Sec 194-IA | Must file 26QB, issue 16B certificate |
| Agent (POA Holder) | No TDS deduction required | Acts on behalf of seller, should get buyer’s confirmation |
| Seller | No deduction responsibility | Can claim TDS credit |
---
### Important:
* **No double deduction of TDS** on the same transaction.
* TDS is deducted only once by the buyer.
* Agent should get proper documentation showing TDS deduction to avoid any liability.
---
If you want, I can help draft a letter for the agent to request TDS certificate confirmation from the buyer or help with any other related documentation. Would that be helpful?
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