Mr. A purchased a property for 65 lacs in January 2015. He paid entire amount of Rs. 65 lacs to the builder without deducting any TDS u/s 194-IA in Form 26QB. The builder has shown entire amount of Rs. 65 lacs in his books as full consideration received and accordingly filed his return. He could not taken any credit of TDS @ 1% i.e. Rs. 65,000/-as we have not deducted nor paid.
Now we have received a notice from IT department asking to pay tds on sale of property and to file 26QB form.
Query: As the builder has already accounted the amount paid by us i.e. sales consideration of Rs. 65 lacs and paid the taxes on that. Whether this fact can help us not to file Form 26QB and non-payment of TDS now because if filed now, it will attract penalty till date.