Tds property

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 July 2016 I am buyer of property . Last year I purchased a property of amount 50Lacks. I paid full payment to seller ( owner) as 40 lacks by cheque from bank where I taken home loan and 10 lacks from my side through cheque.
But recently I come to know their TDS which need to deduct for 50 lakh and above value property from payment of seller. This case was last year so may be huge penalty will come to me from Government.
I have contacted to seller , but seller not agree to give tds amount back to me.

Now please guide me how to settle the tds issue . I am in big trouble and financially not in situation to handle this , in my life first time I purchased property by taking huge loan risk and this issue making big tension for me.

Rachit Nagpal

Rachit Nagpal (Expert)
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16 July 2016 You can pay 1% TDS from your own pocket if seller is not agreeing on it.

CA AJAY KUMAR AGRAWAL

CA AJAY KUMAR AGRAWAL (Expert)
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16 July 2016 As the value of property has touched Rs 50 Lakhs, TDS u/s 194-IA is applicable. As per said section transferee (you) are liable for said compliance. Section further says "Tax is deductible @1%. If however the recipient does not furnish his PAN to the deductor, tax will be deducted (by virtue of Sec 206AA) @20%. As such first collect his PAN & deposit TDS @1% with interest. Better late than never.

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