1% tds on sale of property

TDS 185 views 4 replies

Nithya

23 Points Joined January 2018

Hi Experts,

I sold a property on 15-Dec-2017 for 55,00,000. The buyer had mentioned in the legal document that he has provided the 1%TDS on lumpsum (55,000) as a DD to me at the time of Sale. We had an off-the-record understanding that he will share 50% of the TDS amount. But now he is refusing to share.

I had the below doubts -

1. Am I obliged to pay the 1%TDS here ? If I dont pay, what would be the issues I will have to face ? My worry is that I have signed the legal document saying that I have obtained the TDS amount as a DD from the buyer.

2. Will the buyer approach me for any chalan or forms at the time of his IT-Returns ?

Regards,

Nithya

Replies (4)

vamsi krishna

Chartered Accountant

284 Points Joined February 2017

TDS has to be deducted by buyer of property @ 1% as per 194 -IA & same tds has to be deposited to GOvt by buyer itself & then he has to issue form form 16 b to seller .

vamsi krishna

Chartered Accountant

284 Points Joined February 2017

Seller is not required to deduct TDS .. TDs is to be deducted by party who makes payment .

Nithya

23 Points Joined January 2018

Thanks Vamsi,

Unfortuntely as a part of the legal document (registered at the sub-registrate office on a stamp paper and signed by both parties and 2 witnesses), I have agreed to have obtained a DD towards the TDS amount at the time of Sale.

So, wont the buyer have this as a reference to hold me responsible for paying the TDS on his behalf ?

Regards,

Nithya

vamsi krishna

Chartered Accountant

284 Points Joined February 2017

Here basically two points .. First point is as per law it is the responsibility of buyer to deduct TDS & same need to be filed & paid to Government .. Next point is as per terms u fixed & entered into . So u r not responsible for payment or deduction of TDS