Tax deducted at source (tds) under section 194-ia of the income tax act, 1961

The mistake (or mischief ) on the part of the seller could be taken care if the buyer files the IT return, preferably, through an IT practitioner.

If a person deducts the tax at source and is liable to deposit to the government and fails to do so, he can be sentenced to imprisonment of a minimum of 3 months, and the sentence can be extended to a maximum of 7 years. The concept of TDS was introduced with an aim to collect tax from the very source of income. As per this concept, a person (deductor) who is liable to make payment of specified nature to any other person (deductee) shall deduct tax at source and remit the same into the account of the Central Government. So your mother can give a complaint based on the documentary evidences in her possession for the tax educted by the buyer and let the income tax department initiate action after verifying the records.

Well analaysed, opined and advised by learned senior lawyer Mr. T Kalaiselvan, I endorse it.

Advocate P Venu my mother has not made any mischief or mistake. It is the responsibility of the seller to deposit the TDS with Income Tax department which he has not done. Now my mother will fill file Income Tax return and pay her Capital Gains tax in appropriate time. It is buyer's mistake. Now rule is buyer after filing TDS in Form 26AQ will handover Form 16B to my mother buyer which she shall use to file income tax. My mother is of no knowledge that buyer has filed Form 26AQ or not as he has not handed frm 16B. So mother cannot initiate this transaction. What I am suggesting is that mother sends a registered post to buyer that you have not handed me Form 16B so kindly hand me over Form 16B. I am ready to give you Rs 58,000 as TDS. Next with recieved copy he will make a police complaint that she is not unaware of any TDS deposition because Rs 58000 is not deducted from her account and she has not recieved Form 16B. Next she will with recieved copy of police complaint and registered post she will make a complaint to income tax department stating that buyer has not deposited Rs 58000. It is buyer's responsibility

Your subsequent post suggests that you are trying to make things more complicated especailly when there are options to solve the issue.

The police will not entertain a complaint in this regard because it is out of their purview.

It is the buyer's responsibility to deduct the tax at the time making final payment towards the sale consideration amount, if that was not done by the buyer then your mother has to pay the applicable tax to the government.

It is not a criminal dispute for taking cognizance and/or any action by police.

Respected advocate sir thanks for your response. My mother will file her income tax return in time and pay capital gains tax if applicaple which is adjusted with that TDS. If seller has deposited that TDS then ultimately it would have been refunded to my mother after adjustment. Since no TDS is paid so ultimately whatever CG tax will be there she has to pay. But clearly in the income tax act the responsibility is with the buyer to deposit TDS. On non-reciept of TDS in the income tax department action will be taken against the buyer and not the seller. She will file her income tax return

The buyer may be liable to deduct tax from the sale consideration amount however if he omitted to do so then the applicable taxes are to be paid by the seller, overall it is the seller who suffers the tax.

Originally posted by : P. Venu
	The mistake (or mischief ) on the part of the seller could be taken care if the buyer files the IT return, preferably, through an IT practitioner.

I am sorry.  My reply may kindly be read as  "The mistake (or the mischief) on the part of the BUYER could be taken care if the seller files the IT return ................."

The error is regretted.