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TDS IN LTCG

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vijayakumar

proprietor

175 Points Posted on 16 August 2023

Respected sir,

I am selling a plot & have ~50 lac - LTCG in this. nO THE BUYER ( A TYPICAL BUILDER ) IS TAKING only A power of attorney., - (mentioning HE IS TAKING a general power , ( including the power to sell ) POWER WITH OUT ANY CONSIDERATION. & THE TILTLE IS not changed. He may divide the plot later , get approvals from the authorities, sell later- mostly to people who take bank loans. Now I am given DEMAN D DRAFT. FOR THE AMOUNT. . . cAN i PAY THE tds , fill fom 27q .

Pl guide me sir. & Thank you for your precious time ..

v.kumar

Replies (5)

Quick Summary

A plot owner is selling a plot via a registered Power of Attorney (GPA) to a builder, receiving approximately £50 lakh as Long Term Capital Gains (LTCG). The builder is not changing the title but has the power to sell parts of the plot later. The owner is seeking guidance on whether they can pay TDS and LTCG based on the current amount received, as the future sale price by the builder is unknown. The advice suggests the tax liability rests with the owner for the total amount collected by the builder on their behalf and recommends consulting a tax professional.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

212434 Points Posted on 16 August 2023

Is power of attorney registered with Sub-registrar?

vijayakumar

proprietor

175 Points Posted on 16 August 2023

yes sir. power of attorney is registered in registrar. but written as- with out any value , but given power to sell.the buyer pays DD, gives receipt. BUT IN REGD DOCUMENT THIS AMOUNT IS NOT SHOWN.

THANK U for your time sir

regards

kumar

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

212434 Points Posted on 16 August 2023

There is no registered sell deed made till date, the amount received from individual plot purchasers is/will be collected by your GPA holder on your behalf, so the tax liability will arise over you for the total amount received by builder on your behalf.

Better to consult your auditor/ tax professional to sort out the tax liability part over aggregate earning by builder. You may receive ITD notices herein after.