TDS non deduction as per section 194 IA

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

Thank you sir! If suppose seller pays capital gains tax or claims exemption, will the buyer still penalized 

The buyer has to deduct TDS as per the law. He will only be questioned if Department comes to notice of it.