Tds on property

TDS 208 views 2 replies

purchase of 2 property one Rs.5000000/- and second rs.8000000/ after july 2014 and not deducted to tds on sach property.and not any PAN no. of Seller. today i have notice to income tax department to pay TDS and penlty please reply what can i do which amount to pay because i have no PAN No. to seller. pls reply

Replies (2)

Its better you consult a practicing chartered accountant and reply to that notice to avoid further litigations.

As per section 194IA - Any person, being a transferee, responsible for paying (other than the person referred to in section 194LA) to a resident transferor any sum by way of consideration for transfer of any immovable property (other than agricultural land), shall, at the time of credit of such sum to the account of the transferor or at the time of payment of such sum in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equal to one per cent of such sum as income-tax thereon.
No deduction under sub-section (1) shall be made where the consideration for the transfer of an immovable property is less than fifty lakh rupees.
Hence you were required to deduct tds on above transactions. As regards the matter that seller doesn't have PAN, in such case tds was to be deducted @ 20%. So,kindly consult a practising CA or tax practioner and pay your tax and penalties


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