25 April 2022
A bank has taken possession of a piece of immovable property from a defaulting borrower through Court. Now Bank is selling the same through Auction. One Mr. X the bidder is the buyer - no doubt. So Mr. X is supposed to deduct tax at 1% from the Seller. Is he to deduct tax from the Bank or from the original owner ? Than you
25 April 2022
THANK YOU SIR FOR CLARIFYING MY DOUBT THE MAIN DOUBT WAS THAT WHEN BANK GETS POSSESSION AND OWNERSHIP , THERE ARE CHANCES FOR THE BANK TO BE THE PRESENT OWNER. MORE THAN THAT ORIGINAL OWNER LOST HIS OWNERSHIP WITH THE COURT ORDER. ALL THESE PUT TOGETHER MAKE THINGS COMPLICATED - THANKS
25 April 2022
The bank takes possession of the property towards settlement it's dues. Bank is not owner of the property. The capital gains tax only payable by the owner of the property hence TDS to be deducted in the name of the owner of the property.
CAclubindia
