Dear Sir,
We sold our plot of land in Pune in November 2013 for 92 Lacs. Neither we, nor the buyer realised that 1% TDS on property needs to be deducted and paid to Govt. As such, the Buyer paid us the whole amount of 92 Lacs.
In February, we informed the buyer regarding this and transferred INR 92,000 to his account, so that he could pay the same. In end-February 2014 he paid the sum of 92,000 to the Govt as TDS, but not the interest due.
Meanwhile, we purchased a flat in Mumbai for 95 Lacs, in the same financial year. As such, we told our CA to file for TDS refund. However we got a mail from Tax department mentioning "Tax credit mismatch". We did not receive the refund of Rs.92,000.
Could this be due to the buyer of our plot not paying the interest applicable on the late payment of the TDS on property?
Please advise.
Regards,
Mandar
CAclubindia
