Tds on buying property

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Rajesh Melarcode

Professional

21 Points Posted on 18 March 2015

Hi, As a buyer of a property I deducted TDS from the builder while I made the payment and also remitted Tax on behalf of the seller. Now is there anything to be filled in ITR form as buyer of the property with respect to the TDS amount deducted from the seller.

Replies (5)

Guest

Posted on 18 March 2015

You have to show the property amount including TDS in your balance sheet.

(eg. if House cost is 6000000. You deducted Rs 60000 as TDS and paid Rs 5940000 to builder. The amount of asset in your BS will be 5940000+60000=6000000)

CA Raj Doshi

Practising CA

5649 Points Posted on 18 March 2015

If in the balancesheet directly amount shown as 6000000 then does it amount to any mistake ? Is there any provision for disclosing the same as net+tds ? Please share.

Guest

Posted on 18 March 2015

The amt has to be shown as 60L directly in BS. I was just explaining the breakup as the query was about accounting/disclosing the TDs amount. :)

CA Raj Doshi

Practising CA

5649 Points Posted on 18 March 2015

OK. Thank you...........

Vishal Goel

Chartered Accountant

1725 Points Posted on 18 March 2015

All the high value transactions are automatically reported to the income tax department by financial institutions, banks, mutual funds and other authorities through AIR and the department also keeps track of your AIR transaction through your PAN.

In case you purchase or sell any immovable property, the transaction is required to be registered with the office of registrar. This office is also required to report details of purchaser and seller of all the transactions where the value of the immovable property is Rs30 lakh or more.