TDS on Purchase of a property – few questions

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TDS on Purchase of a property – few questions

Hi Everyone, I have few questions about TDS on purchase of property. In my case, demand for payment was made in Feb 2013 but I ended up paying a portion of that demand, after june 2013. In this case, Do I need to deduct payment on the amount paid after 1st june 2013 or on the whole amount of that demand, including the payment made before 1st june 2013? Another question is that in some cases, I made excess payment of TDS and in some case I paid TDS multiple time for the same installment. How should I rectify it?

Profile photo of jigyasu Asked By: jigyasu 1 replies 1 helpful answers Last Updated: 1 month, 1 week ago
  • Profile photo of jigyasujigyasu
    Participant

    Hi Everyone, I have few questions about TDS on purchase of property. In my case, demand for payment was made in Feb 2013 but I ended up paying a portion of that demand, after june 2013. In this case, Do I need to deduct payment on the amount paid after 1st june 2013 or on the whole amount of that demand, including the payment made before 1st june 2013? Another question is that in some cases, I made excess payment of TDS and in some case I paid TDS multiple time for the same installment. How should I rectify it?

  • Profile photo of Nitesh BindNitesh Bind
    Participant

    Hi there, Section 194IA clearly mentioned that w.e.f. 01-06-2013 any person being a Transferee responsible for paying any consideration FOR purchase of immovable property shall be liable to deduct TDS @1% thereon. Nowhere it has been said that property should have been purchased on or after 01-06-2013 but we have to see two factors: 1. Payment has been made on or after 01-06-2013; & 2. It has been paid FOR PURCHASE OF IMMOVABLE PROPERTY. So in my opinion, you have to deduct the TDS for sure. Then comes your second Query which is that you have paid the TDS amount TWICE: For this you could simply make the Correction in form 26QB online OR you can simply just adjust that amount against the payment of next installment and it will be also clearly shown in the Form 16B. So you need not to worry about anything. Thanks.

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