We sold a house for 60 lakhs in Dec'24. My husband & I jointly owned the house. In the document Rs.60000 was mentioned as TDS. We assumed that we can claim it back during ITR filing. But only while filing in Sep '25 we came to know that the TDS was not deposited at all. When we contacted the buyer they mentioned that since they had taken a housing loan the bank had withheld Rs.60000 and thought that that was sufficient for TDS entry. The document writer should have guided properly or the registrar should have asked for the challan during registration but that also did not happen.
- Is there any legal problem for us (seller) since we have correctly shown the sale proceeds in our ITR?
- Is there any problem for the buyer?
- How can we release the Rs.60000 withheld by the bank?
- Both the buyer and seller are not aware of the rules. Is it the duty of the registrar to check these forms properly?
- My husband worked in an African country during the sale. But he was residing here during the original purchase of that house land/construction. Will he still be considered under NRI taxation for the sale?
- We filed our returns using an Auditor's consultation. They mentioned that the entire liability was with the buyer and since we have filed properly there should not be any further issues. But since the bank is not releasing the Rs.60000 we dug further and some sources are saying that the buyer should pay the fine even if this happened in the past financial year. If they are not paying it should we send a legal notice? We have good terms with the buyer and did not want to send a notice unless absolutely necessary. Can we include the document writer and/or registrar in the notice?
Thank you for your suggestions.