1% tds on sale of property

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Nithya

23 Points Posted on 30 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

203 Points Posted on 30 January 2018

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

203 Points Posted on 30 January 2018

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

Nithya

23 Points Posted on 30 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

203 Points Posted on 01 February 2018

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