Tds on property purchase under 194(1)

Save Share

This query is : Resolved

Johny Kutty (Querist)
Follow

16 June 2016 Husband & Wife jointly purchased under-construction property from a very reputed builder in Bre. The buyers are to deduct 1 % TDS from the sale value for every payment made.The builder got us to sign in the purchase agreement that he will file the TDS on our behalf,which is a usual practice followed by big time builders. As per IT rules, TDS on the installments have to be remitted by each of the joint buyers for 50 % of the installment value. Unfortunately the builder deducted full TDS from the 1st named buyer only, with out consulting us, may be for his own convenience. This is clearly against IT rules in force,although full money due to govt has been remitted. If the mistake is not corrected, ITOs may issue us notices and harass us. Cancelling the challans, obtaining refunds and refiling with penalty,interest,fine etc could cost us heavily. Is there any other way of rectifying this mistake ? Can some Tax lawyer/ practitioner undertakes this task for us ?

Rupesh Jain

Rupesh Jain (Expert)
Follow

16 June 2016 section of 194IA applicable every time purchases of immovable property exceeds Rs. 50 lacs and its buyer liability to deduct the tDS and deposit the tds and form 26BQ on or before the due date.