sir,
buyer of old residential property more than 50 Lakhs sale considerations is refusing to deduct TDS since he is availing home loan & banker is not willing to deduct while issuing the final payment at time of registration. Even though seller orally advising the buyer to deduct TDS so as to aviod IT Litigation in future. Buyer says nobody following this & nothing will happen. Who will be penalized by IT department buyer or seller in case of any Litigation? What shall seller do? kindly advise.
the obligation to deduct TDS is on the buyer of the property only. hence the litigation will also be on buyer only.
Non deduction of TDS would attract Interest, Late Fees and penalty.
Interest : Interest @ 1% per month or part of the month from the date of the purchase
Late fees : Late fees of Rs. 200 per day till filing of TDS return (26QB)
Penalty u/s 271H : 10,000/- to 1,00,000/-
The department may get the information from the registration department through Annual Information Report (AIR) to issue notice to the buyer for non deduction of TDS return
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