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Sec 194ia

CA Tarun Chopda (Officer Taxation) (52 Points)

18 April 2016

Intro :

The provisions of this section states that TDS on sale of Immovable Property should be deducted at source from payment on transfer of immovable properties (other than agricultural land) where the total consideration paid or payable is more than Rs 50,00,000/-.

Query :

As TDS is to be deducted by buyer , in my case the buyer sold property in dec- 2013 and forgot to Deduct TDS due to lack of knowledge. Now in Jan 2015 buyer got a I.T notice. Today the seller n buyer are not in contact and the seller is not traceable also. Can any relief be provided to the buyer, it was not his fault but now he will hv to bear the entire TDS on his pocket. any Remedy ???

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6 Replies

(Guest)

Was any consideration paid before 1/6/13 or any agreement made before that date?

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CA Tarun Chopda (Officer Taxation) (52 Points)
Replied 18 April 2016

Post 1/6/13.

(Guest)

Well then the buyer is responsible for the payment of TDS. Usually the Registration of the property is not allowed to be done without TDs formalities. In this case the buyer will be liable to pay TDS, interest and penalty. We could try to take benefit of certificate 26A from a CA that (if) the seller has paid tax on the transaction in time. But in your case the seller is not traceable, so there no scope for that too.

CA Tarun Chopda (Officer Taxation) (52 Points)
Replied 18 April 2016

Yes correct thank you so much for the reply. But now m just planing to revert the notice seeking some mercy from the Dept. as it was purely unintentional and the assesse (buyer) till date has been a geniun tax payer with no default. The reply will also seek some consession from facing hardship by buyer on grounds of interest and penalty.