TDS ON PURCHASE OF IMMOVEABLE PROPERTY U/S 194 IA

This query is : Resolved

P.SHANGAR (Querist)
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19 July 2024 SIR, IN THE PRESENT CASE THE BUYER OF THE IMMOVEABLE PROPERTY PAID FULL AMOUNT OF SALES CONSIDERATION TO THE SELLER WITHOUT DEDUCTION OF TDS U/S 194 IA. TDS DUE IS RS.119000/-DURING JUNE,2023.
AT PRESENT THE SELLER OF THE PROPERTY HAS FILED THE INCOME TAX RETURN AND PAID THE CAPITAL GAINS TAX AND CESS RS.148536/-. WHETHER TAX PAID BY THE SELLER CAN SAFEGUARD THE BUYER FROM THE CONSEQUESNCES OF NON-DEDUCTION OF TAX . KINDLY GUIDE US THANK YOU SIR

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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20 July 2024 The deductor may face a penalty U/S 271C of the Income Tax Act. The penalty amount can be equal to the TDS he failed to deduct or deposit.
He may seek waiver of penalty citing applicable tax paid by the deductee.