Girish (.) 29 June 2013

Payment mode for property tds

I purchased a property yesterday for a total value of above Rs. 50,00,000. In the Property Sale Deed I have mentioned that I will be paying the property TDS of 1% by cheque from ICICI Bank.

Today, I entered all the payment details in TIN website and it created an acknowledgment number. As mentioned on the acknowledgment, I took the printout and took to ICICI Bank, Indira Nagar, Bangalore.

However, the Agent and Bank Manager refused to accept this acknowledgment form and requested me to manually fill the Form No. ITNS 280 form. As I understand, this form is for Income Tax and not for property Tax. SO I didn’t fill the Form ITNS 280. It seems the bank is not yet aware of the new process.

Then I called Income Tax customer care office. They mentioned that all banks are not accepting the acknowledgment which is generated online and advised me to directly make the payment online.

Now, I am left with no option but to make the payment online. However, in my sale deed it is mentioned that payment will be made by cheque.

Will it create any problem in future by tax authorities or during future sale of the same property, if I make the payment online since it is not in accordance with the Sale Deed?

Regards

Girish

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2 Replies

2BHelpfull (Other) 29 June 2013

It is mandatory to deposit the TDS using e-payment mode. However, in cases of taxpayers who dont have a net banking facility, an option of depositing the tax subsequently is provided. In this option, the taxpayer is required to issue cheque / draft in favour of the bank who would in-turn use this fund for paying the TDS amount. In other words, the tax has to be deposited ONLINE.

From your query, it is not clear whether you are having a net banking account with ICICI Bank. Considering the fact that it is mandatory to pay the TDS online, there should not be any issue if you directly deposit the TDS amount using net banking facility since an entry in your bank statement would state that the amount has been debit for payment of TDS.

Girish (.) 29 June 2013

Thanks. Agree that the bank statement would reflect that the amount is debited if I make the payment online.

My concern is only with the cheque number mentioned in the property Sale Deed. Since now I am making the payment online, do I need to send any applicaton to sub-registrar office or tax authorities saying that my payment mode is not cheque as mentioned in the Sale Deed, rather I have made the payment online?

Regards

Girish