Hi, I have a question on TDS on sale of property. Would really appreciate your help.
Party-A bought a 2bhk from a builder in 2011 for 53L and got possession in 2016 but didn't register the property.
Party-A, the original buyer/assignor is now selling it for 86.5L and assigning their rights to a buyer, Party-B through an assignment agreement.
Party-B wants the sale deed to show the total amount they are paying to Party-A.
When Party-A requested the builder's lawyer to mention this 86.5L in the sale deed, Builder's Lawyer suggested to contact a CA/Auditor on how the TDS should be shown in the sale deed because Party-A already paid 53L between 2011 to 2016 to the Builders without deducting any TDS as the TDS rule was brought in between in 2013.
Now the new buyer, Party-B would be paying 86.5L to Party-A so Auditor to advise how to deal with this TDS as Registration would be done by Developer but the money is being paid by buyer (Party-B) to seller/assignor (Party-A) since Party-A already paid all the money to Developers incl. transfer fees.
The current language in the new Sale deed says the money 53L paid by Party-A to Builders has been reimbursed by Party-B so the Party-A is assigning their rights to Party-B so Party-A is signing consenting witness during the property registration and just mentions the date of assignment agreement without referring to the amount paid by the Party-B to Party-A.
*The question is,* who should pay how much TDS to whom and what's the best way to deal with the TDS delay as the TDS rule came into effect in between and what should the sale deed language look like. When the registration is being done by Builders, will the sub registrar register the property if TDS is deposited in Party's PAN and not deposited in the Builder's pan?
Thanks and Regards