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Tds not deducted on purchase of property from nri. options?

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Murali

software engineer

39 Points Posted on 23 April 2016

Hi,

I purchased property from NRI recently through GPA (of his father). I was completely un aware of the implications and rules of 195. Hence no deduction of TDS made. Sale deed executed two weeks back. What options do I have now. Experts please help me. I just realised it two weeks late and been having sleepless nights since then. If seller submits NIL deduction certificate will it help ? Seller purchased this property just 1 year back from builder. Not sure whether Seller is aware of this or not.

Regards,

Murali

Replies (1)

Shailendra

Consultant

35 Points Posted on 25 April 2016

As you purchased the flat 2 weeks back, you have until 7th of next month to deposit 33% of the sale consideration as TDS (short term gain). Assuming you have a TAN no. already. If not you would need to obtain a TAN and if it gets beyond 7th of the month I believe you can still pay the TDS by adding a late fee and interest. Toughest part is asking the seller to refund 33% of the amount you paid him !!

If seller gives you NIL TDs certificate before end of Q1, I think it will help as you can then avoid paying any TDS and file nil-TDS return by 15/7 by quoting the Certificate number. But its surprising the registration happened, most Sub-Registrars I heard do check whether the TDS is cut or not before registering, and those details have to be put in sale deed..