Raj Rajanala (Engineer) 25 November 2014

Sold property tds issue

I needed some advice regarding a tax situation in India. Please find below the sequence of events.

24/12/2005 --> I purchased a property for 60 lakhs in Chittor India. (Paid about 58 in white but the stamp duty was paid for 30 lakhs only).
7/12/2007 --> Sold the above property for 130 lakhs. (70 lakhs of it was white and stamp duty paid. The rest was paid to me in cash).

19/2/2014 --> The buyer received a notice to pay up 21.5 lakhs(30% of the profit(70-35 lakhs) + interest for the delay) as the buyer/me didn't know to deduct the TDAS at the time of the registration. Given that I sold within 2 years of buying the property this was marked as short term capital gains.
05/05/2014--> Buyer paid the 21.5 lakhs and cleared it.

While I was in India in July the buyer approached me and asked me to reimburse the tax paid by him. I offered the buyer 12 lakhs, which he didn't take and demanded all of the money. Please let me know if I am legally obligated to pay and if there are any consequences that I have to account for.

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3 Replies

Advocate Kappil Cchandna (Expert Bail & Criminal Defence Lawyer at Delhi Supreme Court of India) 25 November 2014

Call CA karan Chandna at 9871563826.

Advocate Ravinder (Advocate/Attorney) 25 November 2014

Good Query.

T. Kalaiselvan, Advocate (Advocate) 28 November 2014

@Kapil Chandna: you were advised to not venture into business promotion while answering queries here, if you cannot answer do not canvas business, it is unethical and irritates others who spare and devote their valuable time to render service at free of cost.

@Querist: If the purchaser has paid the taxable amount on your behalf, it becomes your duty to return the same to him, however, you may consult your auditor/Chartered account for a further opinion and proceed as per his advise, in my opinion, it should have been suffered by you.