Buyer deposited tds and also paid full sale money to seller, how to claim now? Please Advise?

Hi,

My father(buyer) purchased a property last month and since the seller did not agree to deduct the TDS from the sale amount. The buyer paid the TDS and also paid the full sale amount to the seller. However the seller personally confirmed to return the TDS amount, incase later received in their account based on personal trust.

We have form 26qb, form 16b available and downloaded. Now my father (i.e. the buyer) needs to raise a claim, how do we do this???? 

Please share me the steps/instructions to do this? Seller is not willing to help much, as its we who paid the TDS and also paid him full sale amount. But if we are initiating the refund on his behalf, he agrees to co-operate.

Replies (3)

As a buyer you had responsibility to deduct TDS from the agreed value and deposit it to treasury; and no seller can deny for the process. Moreover you cannot get refund of the amount unless the deal gets cancelled.

As you have already paid full amount to seller, its very difficult to get it back from seller, as the TDS amount will get adjusted against his capital gains tax liability.

Unless seller co-operates, only option is to drag him into court!!

thank you for the response and the details. I understand its very difficult and we have taken the risk of that amount. However the seller is currently co-operating and has agreed to help to get the refund in case the refund is available post all adjustments.

I do have another query now. Which site should we use to raise the refund request i.e. the TRACES website or INCOMETAXINDIA.GOV.IN website ???

Only by filing seller's IT return, for the relevant assessment year. (i.e. after April 2020)

But what about his tax liability over capital gain over the sale of the property?

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