Tds on sale of immovable property

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 January 2017 Good Day Sir,

I sold my flat last week & buyer paid me full amount less 1%TDS. TDS deducted by Buyer has been deposited by Buyer under wrong Head in ADVANCE TAX in Sellers account.
1% TDS should have been deposited by Buyer By Filling Form 26QB.
I have following questions:
1. Buyer wants me to send him my form 26AS showing Advance Tax has been paid in my ( Sellers) account. My concern is that I have not made mistake, why I have to write an email making request to him( Buyer) for making necessary correction to Income Tax Authorities.
2.
What should be the right procedure to have the correction done so that I( Seller) do not loose my share of credit of 1%TDS.
3.
What are my duties with respect to this deal for depositing tax by Seller.

Please suggest me the right steps to take. I donot mind giving back credit of 1%TDS in my ADVANCE TAX but I should not land up loosing my credit.

Thanks

Ruchi

Ruchi (Expert)
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04 January 2017 One thing that you can do in this case is to ask the buyer to redeposit 1%tds through form 26QB and in turn you should return the amount deposited by him in your Advance tax account to him. This way TDS liability would also be settled and if the total TDS and Advance Tax together happen to be more than your tax liability then you can claim it by filing your Return.

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Querist : Anonymous

Querist : Anonymous (Querist)

04 January 2017 Good Day Ms Ruchi,
Thanks for your advice. I advised him but he wants me to pay through FORM 26QB & since has alraedy paid me in the form of ADVANCE TAX he wants me to have the refund with me until I get it from Income Tax dept. Frankly, I would not like to wait for I.Tax to send refund until Sep/Oct17. Since he has made mistake, he is trying to rqst through Income Tax to get it reversed & get correction done to deposit into Form 26QB. If it works or not I donot know for him. What could be the repercussion of this for him making payment under wrong head by him?But just want to ask you, am I liable for any penalty by Income Tax on me as seller except for LTCG which I will take care. Thanks
Best Regards

Ruchi

Ruchi (Expert)
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05 January 2017 No, you are not liable to any penalty. Payment of tds is the buyer's responsibility.

Querist : Anonymous

Querist : Anonymous (Querist)

06 January 2017 Thank you very much Ms Ruchi.

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