Need to know whether TDS deducted by purchaser in respect of house property can be claimed by seller for adjustment against liability for capital gains tax? If not, will it be refunded separately?
thanks
v.raj (individual) (104 Points)
11 August 2018Need to know whether TDS deducted by purchaser in respect of house property can be claimed by seller for adjustment against liability for capital gains tax? If not, will it be refunded separately?
thanks
CA Mayur Todmal
(Practicing CA)
(7645 Points)
Replied 11 August 2018
yes you can use tds against your tax liability.
Anmol Davesar
(Chartered Accountant)
(818 Points)
Replied 11 August 2018
if it is coming up in you 26AS then surely you can claim it.
Vaishnavi Ganesh
(Chartered Accountant)
(861 Points)
Replied 11 August 2018
It can be adjusted against the Tax liability
v.raj
(individual)
(104 Points)
Replied 12 August 2018
thanks. the other query is: when the sale agreement is made, normally the full consideration amount is shown.
Now, since TDS is deductible, how should this be reflected in the Sale Agreement, which has to show the full consideration amount paid by cheque or draft.. for Rs. .... (full value). The amount of full consideration has also to be used to arrive at capital gain if any.
Is there any legal format to reflect the TDS in the agreement itself, because when TDs is deducted, obviously the buyer would issue a draft/cheque for agreed consideration minus the TDS.
What is the actual practice in this regard.
thanks
Vaishnavi Ganesh
(Chartered Accountant)
(861 Points)
Replied 12 August 2018
In the agreement the mode of payment of consideration can be mentioned.
Such as, Cheque drawn in xxx bank dated DD/MM/YYYY for Rs. xxxxx
TDS deducted u/s 194IA & deposited in the account of Central Governement, and reflected in the Seller (x party's) PAN of Rs. xxxx
The appropriate words can be used.
J.TONYJOHN
(Accounts Manager)
(24 Points)
Replied 19 December 2018
Dear sir,
I am selling my property R-3200000/- for my daughter marrage. the party is giving the money the way of cheque(bank loan)-2500000/+cash-700000/-.In this term how mach i pay the tax--- Any exemption clim for the sale amount
CAclubindia
