Tds under 194(1) for property purchase
Tom
(Querist) 15 June 2016
This query is : Resolved
Husband & Wife jointly purchased under-construction property from a very reputed builder in Bre. The buyers are to deduct 1 % TDS from the sale value. The builder got us to sign in the purchase agreement that he will file the TDS on our behalf,to help us ostensibly, but actually to get his TDS credit on time with out any error ! This is a usual practice followed by big time builders. As per IT rules, TDS on the installments have to be remitted by each of the joint buyers for 50 % of the installment value. Unfortunately the builder deducted full TDS from the 1st named buyer only, with out consulting us,may be for his own convenience. This is clearly against IT rules in force,although full money due to govt has been remitted. If the mistake is not corrected,ITOs may issue us notices and harass us. Is there any way of rectifying this mistake other than by obtaining refunds and re-filing, which would entail paying huge amount as penalty, fine, interest etc.? Can some Tax lawyer/practitioner undertakes this task for us ?
adv.bharat @ PUNE
(Expert) 17 June 2016
Builder don't have any authority to deduct full TDS.
Yes surely it can be rectified as fault is made by builder then issue him notice through lawyer for recovery of extra amount.
T. Kalaiselvan, Advocate
(Expert) 19 June 2016
This is an error by the builder. You should communicate to him about this lapse in writing and get an acknowledgment. After that you should follow it up through the builder to rectify the error, if you dont the builder will not be bothered to fetch you the proper relief and you will be in a soup.
