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Tds credit 194ia

Mihir (Wealth Manager) (5293 Points)

27 August 2013

An individual sold his flat having value more than 50 lacs. TDS was deducted, deposited and certificate, too is given. Now the question arises as to what can he do with this credit.

Can it be shown in ITR for AY 2014-15?

If the tax liability is Rs. 20,000/- and TDS credit u/s 194IA is Rs. 50,000/-, does that mean he will receive a refund of Rs. 30,000/-?

Because if TDS credit has no purpose, then can it be treated as an expenses to compute long term capital gain?

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4 Replies

CA LOVELY ARORA (C.A. B.Com (H) Graduate) (2151 Points)
Replied 27 August 2013

Dear Mihir Sir,

i think one should wait for the Income-Tax returns of A.Y. 14-15 to be issued by the Dept... as you know, there might be some column/clarification in this regard about how to show it in the ITR at that time... because it is too early to say something about that..

and if you ask me generally this question, then i think one should go for separate treatment of the TDS deducted under this section.. not to merge it with other TDS of the assessee... and infact, it being residential house (generally) of an assessee... will not be shown in the B/s... then, how to show it with double entry effect is again a problem.. so, better would be to treat it separately like other personal transactions of the assessee... but better would be to wait for ITR issuance by Dept. for A.Y. 14-15 in this regard.

Best Regards,
CA Lovely Arora
ca.lovelyarora @ gmail.com

Mihir (Wealth Manager) (5293 Points)
Replied 27 August 2013

Thanks Mr. Arora for your reply. I think clarification is expected near the end of this FY. There is law, but rule of implementation is incomplete.

S.R.Associates (Tax & Investment Consultants) (115 Points)
Replied 27 August 2013

It is but obvious that when the person deducting TDS is providing you TDS Certificates in Form 16B as the Notification 39/2013 dtd 31.05.2013 contains the provision,You can claim your TDS from Govt.

As far as the question of presentation arises,it is just like another TDS sections and should be shown in tds coloumn.

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Udgam Koomar (Tax Technologist) (1949 Points)
Replied 04 August 2014

Any answers to the question above? If a salried class individual with no other income has TDS done under 194IA, and he has to pay 20000 tax and under TDS3 ITR2 it shows as 50000/- TDS credit, will he get refund of 30000/-???

Also which TDS is relevant to be included in ITR - For Seller of Property OR for Buyer of property as both are mentioned in Form 26AS??