buyer has made the default in deducting the TDS u/s 194IA for FY 2013-14 however, Seller has paid the tax i.(capital gain) etc Kindly advice now what buyer should do ?? he cannot now deduct tds (cannot collect the amount of tax from seller) & if buyer will pay from his pocket then there will be double taxation of same transaction... Note : buyer has received the notice on 4-3-16 for default made u/s 194IA. from IT department having sub of "Calling for info. regarding investment in immovable property" & gave time limit of only 10days to make the default good... kindly advice what should be done ???
1 Replies
Swami Ayyappa Nuli
(TAX ADVISOR & CONSULTANT AT G.S.T SUVIDHA CENTER)
(1372 Points)
Replied 16 March 2016
You have to obtain a Certificate in Form no- 26A from an Accountant (being either your Statutory Auditor or Tax auditor) and submit it to DGIT / Principal DGIT(Systems). This Certificate will contain all details viz., Amount paid by you with out deduction of T.D.S, Return details of Assessee(Deductee) under which he offers such Income for self assessment u/s.140A(also called tax directly paid by Assessee u/s.191) e.t.c. If you obtain such Certificate and furnished to the above authorities, then you are not Deemed to be an Assessee in Default and liable to pay Interest only u/s.201(1A) @ 1% from the date on which T.D.S was deductible till the date such resident has furnished such income and Paid tax there on.
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