Tax deduction at source on sale of property

This query is : Resolved

sidambaraselvan (Querist)
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01 December 2018 My client is intending to purchase a vacant land from his blood relative for Rs.80,00,000/-. He is paying through online transfer.

For this TDS is 1% i.e., 80,000/- has to be deducted and will be paid to income tax department.

My Query was -

1. May the seller can adjust this TDS amount of Rs.80,000/- towards Long term capital gain tax for the assessment year 2019 - 2020.

2. Which amount should be mentioned in the sale deed either Rs.80,00,000/- or Rs.79,20,000/- kindly clarify it.

3. Otherwise, May I mention Rs.80,00,000/- as sale consideration and give details about Rs.80,000/- as Rs.80,000/- has been deducted as TDS in the sale deed.

Kindly clarify

Z (Expert)
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01 December 2018 1. May the seller can adjust this TDS amount of Rs.80,000/- towards Long term capital gain tax for the assessment year 2019 - 2020.

LTCG is a component of the total tax. TDS is to be adjusted from the total tax liability. So, yes.

2. Which amount should be mentioned in the sale deed either Rs.80,00,000/- or Rs.79,20,000/- kindly clarify it.
The Full value of the consideration is 80Lakhs, that's the amount for which the transfer would be affected and be disclosed on all the relevant documents such as sale deed and registry.

3. Otherwise, May I mention Rs.80,00,000/- as sale consideration and give details about Rs.80,000/- as Rs.80,000/- has been deducted as TDS in the sale deed.

You may.