Benefit of tds on sale of property?

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Girish

Others

33 Points Posted on 05 December 2015

Hi,

I recently purchased a property worth more than 50lakhs. I paid 1% tax (TDS on sale of property) to govrnament and to challen +Traces 16B. The challan number and amount is also captured in sale deed since the same was deducted while paying to seller.

a) Do i need mention this while filing IT returns for assisment year 2016-17?

b) Which one i need to give it to seller, Challan receipt or Traces 16B?

c) Will this help in tax calculation for my income in this year? :-)

Thanks in Advance

Replies (3)

jaya krishna

Chartered Accountant

305 Points Posted on 05 December 2015

It's sole proprietor Business you are required to show in books otherwise you are not required to show in ITR. You can give form16b..

harish sama

Article assistant

78 Points Posted on 06 December 2015

Purchase of a property would not affect your income.But if you are a sole proprietor and purchased the property in the name of the business you need to mention this in your balance otherwise there is no need to mention it .However, the details of purchase of purchase has to be mentioned at the time of sale of the property. FORM 16B has to be given to the seller.Challan should be kept with you as proof of payment of tax. Deduction of Tds will not affect the tax liability of the person dedictong the tax, rather it affects the tax of the person from ehom the tax is deducted