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How to get refund of 1% tds on sale on property

23 May 2016

I sold a house for 65 lacs in year 2015. I will be filling return for the same in this year. as you already know it is mandatory to deduct 1% TDS on sale of property if sale value is above 50 lacs. i just want to know is there any provision to get that 1% refunded? kindly reply at earliest.

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8 Replies

CS Advocate Abhishek Goyal (M Com FCS LLB M-AIMA ) (13531 Points)
Replied 23 May 2016

Yes you can get refund of your TDS on filing the TDS return provided you do not have any tax liability on your total income returned. In other words it will be subjet to tax liability if any.

CS Advocate Abhishek Goyal (M Com FCS LLB M-AIMA ) (13531 Points)
Replied 23 May 2016

Yes you can get refund of your TDS on filing the TDS return provided you do not have any tax liability on your total income returned. In other words it will be subjet to tax liability if any.

Milind M. Kulkarni (Practicing CA) (580 Points)
Replied 23 May 2016

There would be capital gains on sale of your flat last year, which are chargeable to Income Tax. You can claim exemption from capital gains tax if you invest specified amount in specified assets within stipulated time. Section 54 requires you to invest in a new residential house and to temporarily park your funds in a designated bank account, you have time till due date of filing return to claim exemption. Alternatively, Section 54EC needs you to invest capital gain amount in specified bonds of NHAI or RECL within 6 months from sale of house. Please go through these sections in detail to know terms and conditions applicable to avail exemption. I strongly recommend you to take professional advice on this so that the advisor can guide on the basis of all the facts.

If you do not avail any of these options, your capital gains will be taxable and you cannot get refund of TDS deducted. However, on the basis of your actual capital gains, you can claim credit for TDS deducted in your return (also cross check this with your form 26AS) as tax paid. If your total taxes paid are more than total tax liability, you can claim refund of the excess tax paid.

anonymous (student) (750 Points)
Replied 23 May 2016

you will be entitled to refund only if your income is less than the basic exemption limit.. and in your case it is not applicable...

Ajmer Singh (13 Points)
Replied 23 May 2016

sorry i forgot to mention that, i have invested capital gain amount into REC Capital Gain Exemption Bonds.

Udgam Koomar (Tax Technologist) (1949 Points)
Replied 24 May 2016

your 26AS will show the credit

Milind M. Kulkarni (Practicing CA) (580 Points)
Replied 26 May 2016

Originally posted by : Ajmer Singh
	sorry i forgot to mention that, i have invested capital gain amount into REC Capital Gain Exemption Bonds.

In that case, you can claim refund of TDS deducted in your tax return.

rohit (service) (22 Points)
Replied 18 December 2018

Hi,

I am a buyer of property. As property cost is more than 50 lakhs, I have paid 1% TDS. Since online transfer from one bank was not sucessful, TDS was paid twice.

Please tell me the procedure to get the refund. Also, who can take the refund buyer (myself) during IT return or the seller?

Regards

Rohit