Didnt deduct tds during property purchase - please guide me on way out

378 views 4 replies

Gopi Chodimella

16 Points Joined March 2018

Dear Experts,

Thanks in advance to many of you out there who are guiding people like us with their valuable suggestions.

I sold one Plot in Oct 2018 and purchased a Flat in Dec 2018. I have reinvested the entire transaction in the New Flat. However, I forgot to deduct the TDS from the Purchase Value and paid the entire amount to the Seller.

It is evident that I made high value transactions during the Financial Year based on the Text I received from Income Tax Dept based on my Sale of Plot or Bank transactions, which is expected anyways. However my questions are :

1. What are the consequences of not deducting the TDS?

2. Registration of new Flat happened in Dec 2018. Can I pay the TDS now and get the refund from the Seller?

3. What happens if I dont do anything now, but show my deal in Black & White during the Income Tax Filing?

4. What will be the penalty for this mistake?

Any guidance would be highly appreciated as I am worried that we have very few days left for FY end. BTW - I realized this miss just today and hence posting this query in this Forum. Please guide.

Thanks,

Gopi

Replies (4)

Giridhar S Karandikar

Team Lead

7558 Points Joined November 2011

if the property value exceeds RS 50lacs then TDS @ 1% if the entire value us required to be made and balance to be paid to the vendor.
now since TDS was not made you need to take a cheque if 1% of the property purchase value from the builder. you will be required to pay penalty @ 200Rs per day from the date last payment was made upto the date if payment of TDS to credit of Central government not exceeding the value of TDS amount.
if the builder refuses to pay the TDS challan make a greivance online to the department.

Gopi Chodimella

16 Points Joined March 2018

Thanks for your clarification, Giridhar. I really appreciate it.

On the other hand, do I need to make this TDC during this financial year or it doesn't matter?

Giridhar S Karandikar

Team Lead

7558 Points Joined November 2011

yes during the fy in which payment is made TDS will be required

Gopi Chodimella

16 Points Joined March 2018

Thanks, Giridhar.

I have been following up with the Builder for a confirmation that I they will refund me the TDS amount (I'll pay now and submit the proof to them), but not getting any response.

What are my options now?

Regards,

Gopi