TDS 194 IA refund for long term capital loss

This discussion addresses a query regarding a TDS refund for a client who incurred a long-term capital loss when selling a house property. Despite the buyer deducting 1% TDS, the client's Income Tax Return (ITR) shows a mismatch in the TDS paid column compared to the 26AS statement. The advice suggests that even with a capital loss, TDS can be deducted, and the taxpayer should file their ITR declaring the loss. The tax department will then verify the claim and process the refund for any excess TDS deducted.