TDS for a purchased property worth more than 50 Lakhs



Hello,

I purchased a property valued more than 50 Lakhs. It seems by rule I should deduct 1% of the property value and submit it as TDS. Will seller get this amount back while ITR?

Another aspect is, buyer may not be agreeing to this and request for full amount before registration.

What options do I have in this Situation?

Thanks
 
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KVO Merau Kutchh

1. Yes. He has to file ITR and claim the TDS amount.

2. No other option. Sub-registrar will not register the document without TDS deduction.

It is liability of purchaser to deduct TDS u/s. 194-IA of IT act.


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Thanks a lot for the quick response and guidance. In this case seller is moving out of India and would be converted into NRI. He was in India from April to January. This won't change anything on the above guidance?
 
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KVO Merau Kutchh

Yes.... No change for FY 2018-19, as he has stayed more than 181 days in India.


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Thanks a lot. Assuming cost of flat as 60 lakhs. We need to show 60 k towards TDS and remaining 59.4 Lakhs as value to seller in cost break up of Sale Deed. Is my understanding right?
 
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KVO Merau Kutchh

Sale deed value 60 lakhs

Stamp duty registration over 60 lakhs only

60000/- paid towards tax deduction & paid to treasury vide challan no. 123456 dated .....

Remainin 59.4 L paid vide cheques or bank transfer/s no....


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CA FINAL ASPIRANT

You have to fill Form 26QB..Form 26QB is a return cum challan for payment of TDS to the Government which shall be furnished electronically for tax deducted under Section 194-IA. Due date: Form 26QB shall be furnished within 30 days from the end of the month in which deduction is made. For eg: if payment/credit is made on 16th April, Form 26QB shall be furnished by 30th May....After that you have to issue form 16B to deductee ...it is a proof of tds deposite to government treasury..

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Thanks a lot experts for your inputs. One last follow up query. If seller was having 75%bank loan and buyer is also having bank loan on 75 %of the value. That way direct buyer to seller transaction is less than 50L. Rest of the transaction is bank to bank. Original documents with the bank only. Still TDS need to be paid on sale deed amount as mentioned in previous replies. No change in the scenario?
 
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KVO Merau Kutchh

No change, as the sale agreement will be for Rs. 60 lakhs only. (TDS to be deducted)


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Hello,

I am an NRI living in Australia. I am representing 5 of 6 parties selling an ancestral home.

All parties live outside India. How much TDS is deducted by the buyer (a property developer) who has offered us all a total of 2 Crore.

Can I claim back the TDS? and How? I have never submitted a tax return in India before. I do have an OCI and PAN card. 

 
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