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Tds on property purchase

Shailesh Pongade (Accountat) (38 Points)

23 April 2016

I have purchased Row House in sept 2013, consideration was Rs 1.80 Cr. Now I have received notice from TDS dept Notice Heading is 26QB Statement not yet filed for Purchase of Property during FY 2013-14. I have paid all consideration to previous owner. My quarry is What I do on this notice and another is I have already paid considerations then what can I do for TDS liability of 1% on Total Consideration Please guide me Waiting for your reply

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Vishal Goel (Chartered Accountant) (1688 Points)
Replied 30 April 2016

you have to pay also interest u/s 201 and late fee u/s 234E.

The interest payable under Section 201 is 1% per month if tax wasn't deducted and 1.5% in case this was done but not paid. Late filing fee under Section 234E for delaying the interest payment of `200 per day, subject to the maximum of taxes due.

If the seller has already paid capital gains tax or claimed capital gains exemption (on the sale of property). The buyer can submit Form 26A certificate from a chartered accountant and request that penalty under Section 234E should not be levied. Though this will save you from the late filing fee, the interest under Section 201 will still apply.