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Refund of 1% tds on sale of property

Rakesh Dubey (DY DIR) (99 Points)

10 January 2018

I sold a property and the buyer deposited 1% TDS against my PAN. Can I claim refund now or do I have to wait for end of FY to claim refund?

How can I do it now?

Thanks in advance!

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9 Replies

Rohit Tulshyan (158 Points)
Replied 10 January 2018

I think you can Calim refund while submit your return file for the relevant previous year
if your tax liability will be nil then u can claim full refund ...
and if any tax liability arise for the previous year
then the net amt either payabl or refundable after claiming TDS

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Dipanshu arora (CA Final Student) (418 Points)
Replied 10 January 2018

While determine your final tax liability, TDS will be consider first
if liability is nil = refund amount shall be as due
if liability is less than refund amount = refund amount left due for refundable shall be net of adjustment of tax
if liability is more than refund = than amount after adjustment of refund shall be due for payment.

Rakesh Dubey (DY DIR) (99 Points)
Replied 10 January 2018

Originally posted by : Rohit Tulshyan
	I think you can Calim refund while submit your return file for the relevant previous yearif your tax liability will be nil then u can claim full refund ...and if any tax liability arise for the previous year then the net amt either payabl or refundable after claiming TDS

1% TDS is deposited in DEC 2017.
1) Can I claim refund right now? How?
2) Or do I have to claim it along with the return to be filed in 2018?

Rakesh Dubey (DY DIR) (99 Points)
Replied 10 January 2018

Originally posted by : Dipanshu arora
	While determine your final tax liability, TDS will be consider firstif liability is nil = refund amount shall be as dueif liability is less than refund amount = refund amount left due for refundable shall be net of adjustment of taxif liability is more than refund = than amount after adjustment of refund shall be due for payment.

So I have to wait for Form-16 from employer after the end of FY.

After that, I file my ITR normally. Considering the TDS deducated by employer, 1%TDS deposited by buyer of property, my tax savings u/s 80C, 80D etc. etc. if any refund is due, I should claim it.

In that case, I should be able to submit Form 16B (about 1% TDS deduction) and ask my employer to issue a consolidated Form-16. Is that not possible or not permitted?

Rohit Tulshyan (158 Points)
Replied 10 January 2018

No you can't claim now ...you can claim while filling of return for the previous year....
you can check your TDs credit in online statement in form no 26AS

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(Guest)

You have to first find out about the taxable capital gains on the property sale and if the gains are long term you have to invest in bonds or residetial house within the prescribed time limits.

Rakesh Dubey (DY DIR) (99 Points)
Replied 11 January 2018

Originally posted by : Madhavi Pandit
	You have to first find out about the taxable capital gains on the property sale and if the gains are long term you have to invest in bonds or residetial house within the prescribed time limits.

So, I have to file my next IT return considering all of the following:

1) employer's TDS (form-16)
2) 1% TDS on deposited sale of property (form 16B)
3) my investments in tax saving instruments (80C etc.) if any

4) Whether i made capital gains from property sale
5) Whether CG tax is applicable or not depending upon whether I invested in bonds or residential property within prescribed time limits

All above analysis must be done before end of FY. Otherwise I might miss the refund of 1% TDS and may also have to pay CG tax.

Please confirm.

(Guest)

that is correct

1 Like

Rakesh Dubey (DY DIR) (99 Points)
Replied 21 March 2018

Madhavi Madam,
To save capital gains tax frmo sale of proeprty, the capital gains have to be invested in another proptery "either 1 year before the sale of the old property or within 2 years of selling it".

If I sold property in FY17-18 and invest the gains in another property in FY18-19, can I include it in the ITR of FY17-18 and save tax? How? Can the gains invested in FY18-19 be included in ITR of FY17-18? Please guide.

[Would appreciate if you can connect me to a professional in Delhi (CP area) who can extend required services at approproiate charges]