Transfer of House Property: Key Dates & TDS Explained

This query is : Resolved

Quick Summary

This discussion clarifies the tax implications of a house property transfer when an advance payment is made. The year of transfer is determined by when possession is given, not when the advance was paid. It also addresses the deduction of TDS on advances under Section 194 IA, explaining that while TDS should be deducted on the advance, the seller can carry it forward to the next financial year when the actual transfer occurs. The process for bringing forward TDS credits to the next financial year via the 'Schedule TDS2' of the Income Tax Return (ITR) is also outlined.

Anil Khatri

Anil Khatri (Querist)

23 January 2023 1. What is the year of transfer of house if advance taken in January 23 but property will be transfered in April 2023.

2. What is the treatment of TDS in above case on advance taken u/s 194 IA?

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

23 January 2023 1. If possession given in April 2023, then that will be transfer event.
2. TDS should be deducted even for advance, but seller can carry forward it in next FY when actual transfer takes place.

Anil Khatri

Anil Khatri (Querist)

24 January 2023 What is the process of transfer of tds to next fy

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

24 January 2023 The option is available in 'Schedule TDS2' of ITR.

Anil Khatri

Anil Khatri (Querist)

29 June 2024 Sir,
how to brought forward tds credit c/f from the previous year?

Anil Khatri

Anil Khatri (Querist)