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TDS by buyer on purchase of property

18 July 2021

buyer forgot to deduct tax at the time of payment.now buyer wants seller to give cheque of amount of tds so that he can deposit it . is seller advisable to give cheque?
or any other solution?

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6 Replies

prem kumar (Manager-Audit) (80 Points)
Replied 18 July 2021

Go for Netbanking, because, incase of paid throw cheque - it's took upto 4 to 7 days. at the same time TDS On property should be pay, within 30 days from the date of registration/paid. after that interest applicable.

1 Like

MAP Poonam (14 Points)
Replied 18 July 2021

Registration of property is yet pending.
buyer made partial payment

prem kumar (Manager-Audit) (80 Points)
Replied 18 July 2021

Ok. deduct on final payment or at the time of full payment received.

Balamurali Unnithan MS (STUDENT) (1631 Points)
Replied 18 July 2021

Ji -Sale value exceeds Rs.50 Lakhs, Then Only Sec.194IA -Applicable.

If advance payment is made -TDS is also applicable, If you forget the same, Adjust with the next payment.

And before registration, you must make the Tax payment to NSDL through Form 26QB.

CA Rashmi Gandhi (Chartered Accountant) (86220 Points)
Replied 18 July 2021

As you will get credit of such tax, you have to pay it. Either deposit TDS challan by yourself or Pay the buyer amount of TDS.

Mahesh Shah (2299 Points)
Replied 19 July 2021

Buyer has to deduct tds. he cannot give chq to seller.
buyer has to complet tds within stipulated time as per terms of agreement and payment
in case tds is not deducted by buyer then seller will not get benifit of tds & buyer will have to pay penalty.
if buyer has paid full amount to you without deducting tds then , then it is better to pay it yourself or pay buyer for 26qb deduction.
if sale consideration less than 50,00,000/- then tds not applicable