Tds u/s 195

Hi,

My client has bought a flat in January,2018 from NRI seller. Seller didn't obtain TDS certificate from tax department and my client didn't deduct any TDS. My understanding is that buyer should have deducted 20% TDS on the sale price and now he has to pay heavy penalty for not deducting it. 

What can be done now to lower his penalty? Please advise.

Replies (5)

The penalty is reduced to some extent or may be nullified on request, provided seller has paid his tax liability and filed return declaring gains over the property, if any

What if the seller has not filed the return and paid the taxes? Then will the buyer be liable to pay the taxes plus penalty for not deduction TDS.

Thanks

Yes ...

 Most of time penalty gets condone for some resons like ignorance of the assessee.....

Please advise me on the followings:-

1. Can buyer (instead of NRI seller) apply for NIL TDS certificate from IT department?

2. Can the certificate be applied after the transaction is over?

Thanks a lot for your advice Mr. Dhirajlal ji.

 

 

1. Yes

2. NO

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