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TDS ON IMMOVABLE PROPERTY

17 October 2018

I HAVE PURCHASED A HOUSE FOR RS.55.60 LACS AND PAID TDS RS.55600. NOW I WANT TO KNOW THAT SELLER CAN CLAIM REFUND OF TDS, AS SELLER IS A HOUSE WIFE. PLEASE ADVISE IN THIS REGARD.

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12 Replies

sanjith kotni (Articled assistant) (663 Points)
Replied 17 October 2018

anyone can claim refund there is no criteria for granting the refund .only one thing is the seller has to fail the return of income claiming the TDS .

1 Like

Sunil Kumar Jeph (30 Points)
Replied 17 October 2018

Whether I (buyer) can claim the refund of TDS amount Rs.55,600/- i.e.1% of registered sale deed (Rs.55,60,000/-) or seller has to claim the refund of TDS. I am a salaried employee and availed a loan for purchase the house. Please advise. . .

sanjith kotni (Articled assistant) (663 Points)
Replied 17 October 2018

seller only can claim as it's pertaining to his income.Buyer cannot claim it yaar

1 Like

Sunil Kumar Jeph (30 Points)
Replied 17 October 2018

But I want to know that whether seller will get full refund Rs.55,600/-, as Seller is a house wife.

1 Like

SHIVANI KUDTARKAR (511 Points)
Replied 17 October 2018

in her case (seller who is housewife) capital gain tax liability will arise and she will get credit for TDS. if her tax liability is nil then she will get full refund

1 Like

Sunil Kumar Jeph (30 Points)
Replied 17 October 2018

I want to clear this issue because seller has not paid TDS amount. I only paid TDS amount on behalf of seller. Seller is assured me that if refund will come then she will return back the money to me.

1 Like

Sunil Kumar Jeph (30 Points)
Replied 17 October 2018

I want to clear this issue because seller has not paid TDS amount. I only paid TDS amount on behalf of seller. Seller is assured me that if refund will come then she will return back the money to me.

1 Like

rama krishnan (12234 Points)
Replied 17 October 2018

getting refund is her problem. you just ask her to verify form 26as and if the tds amount is reflected there, ask her to reimburse that amount which was paid on her behalf. claiming refund by filing ITR is her headache

2 Like

Rakesh Joshi (CA Final) (1272 Points)
Replied 17 October 2018

Since it is capital gain to her which is chargeable at special rate she need to compute the tax as per the provision of Sec 48.

If Indexation benefit and Exemption u/s 54 is availed then refund can be claimed to some extent.

If the TDS paid by you is sufficient to cover her tax liability then refund is not possible.

1 Like

SHIVANI KUDTARKAR (511 Points)
Replied 17 October 2018

what is actual agreement price of flat. to deduct TDS is responsibility of purchaser only. you should have deducted tds and remaing balance should have been paid to her. e.g. if price of flat is 1cr and tax thereon is 100000 then you should have deposited tds of 1 lakh to govt and 99 lakh should have been paid to seller

1 Like

Sunil Kumar Jeph (30 Points)
Replied 18 October 2018

She is not aware of TDS deduction and I also not aware of the same. but before execution of sale deed we both seller & buyer came to know about deduction of TDS. then she refused to pay 1% TDS. Agreement is for Rs.55,60,000/- and TDS is deducted Rs.55,600/-. She is house wife with no other income. Now This entry is reflecting in My 26as form. about her 26as I don't know.