Suppose there is a sale agreement between buyer and seller of a house for Rs 60,00,000.According to rule 1% of the value is to be deposited as TDS by the purchaser with the Government.After paying Tax (TDS) online buyer has to download Form 16B from TRACES i.e. from the website of Centralized Processing Cell of TDS (CPC-TDS).Afterwards buyer has to give the Form 16B to the seller within 15 days from the due date of submission of the “Challan” and the seller thus will be able to claim the credit for such TDS against his/her tax liability.
My question is since seller will be able to to claim the credit for such TDS against his/her tax liability, whether buyer need to give purchase amount of house property by deducting TDS of 1% i.e. Rs 59,40,000 /- (Rs 60,00,000-Rs 60,000) to the seller along with form 16B(for deposition of Rs 60,000 as TDS for further claim the credit) or total amount of Rs 60,00,000/- to the seller along with form 16B and then wait for the seller to get such credit from govt. and then provide it to the buyer?
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