One of my client sold one property for 67 lacs...he received 57 lacs for that. But unluckily deal was cancelled. So, he had to give back what he had received. My question is that buyer have deducted 57 thousands tds under section 194ia...and it was showing in 26AS...so, we claimed it...now AO have issued a notice as capital gain transactions were not there in return...
What to do???
All dear experts are requested to answer...
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Regarding 26QB
Replies (2)
If the deal was cancelled, you should not have claimed TDS...
The purchaser can claim the TDS as refund...
Rectify the mistake....
The seller won't be able to claim TDS 57000/- without showing corresponding income in ITR.
The buyer will not be able to claim refund of TDS in his ITR as there is no such provision.
The way out is there is a procedure to claim such TDS refund by making an application by the buyer to the AO (TDS) giving full details, who on satisfaction of your claim of refund, will issue refund to the buyer.
But before that you have to file revised TDS return and delete 57000/- entry in seller's name. Secondly Seller has to file revised ITR without claiming TDS 57000/- amount. This has to be intimated to AO (TDS) alongwith proof documents.
The procedure with the AO (TDS) roughly takes 2 month time.
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