Immovable Property transaction: TDS of 1% to be levied on transactions above Rs 50 lakh
Read more
Reply
1520 Replies
Sort by :Filter by :
  • Originally Posted by phoenix83
    Friends,

    I had paid 1% TDS a few days ago, and in form 26QB had ticked 'Other' (and not 'Income Tax' or 'Surcharge' etc) because this is a transaction (tracking) tax and not a tax on any income. The amount was also debited from my bank account that same day. However, the form 16B I have now got shows Rs 0 as tax deposited because it sums up only 'Income Tax + Surcharge + Edu Cess + Fee + Interest'.

    Please suggest what should I do now.

    regards,


    You should visit your bank for correction .
    CommentQuote
  • Originally Posted by phoenix83
    Thanks id2ard.

    You are right - I ticket 'Other' on OLTAS page after ticking 0021 and 800 as well.

    I cannot ask the bank for refund because it was transferred online 4 days back itself (I had made online payment). I do have Form 26QB as well as the Challan I had downloaded online, both of which show 0021, 800, PAN details etc. I called up TRACES today and surprisingly the guy told me himself that I must have chosen 'Other' which is why it is showing TDS as zero in Form 16B. However, he said as of now there is no functionality to take care of this and time will tell when this could be rectified or I could be able to move it from 'Other' to 'Income Tax'.

    I checked Form 26AS; it shows this transaction under "PART F – Details of Tax Deducted at Source on Sale of Immovable Property u/s 194IA(For Buyer of Property)", with all PAN/ date/ deductee details but with Rs 0.00 TDS deposited. So I cannot adjust it against anything tax liability as well :-(

    Now what should I do? How can I ask them for a refund? (the TRACES guy did not really give an option of refund)

    regards,


    OK, so TRACES guy has raised his hands (can't expect anything better from that poor soul..)

    Firstly, I hope your challan correctly reflects the TDS amount, if so, you're safe

    Your case has already gone beyond Bank's reach, since, only for physical challans, banks can rectify PAN, Assesment Year & Amount (upto 7 days) and Major, Minor Head, Nature of Payment (upto 3 months from challan deposit date)

    Yours being online challan, all the above details can only be rectified by concerned Assessing Officer (AO) at IT Deptt (for online challan, banks can rectify only Name & Amount, which is not your case)

    So, approach concerned AO with Challan & OLTAS printout (if you have) showing TDS deposit under 'Others' head and submit application with him requesting for correct credit and issue of Form 16B

    Meanwhile, deposit challan copy with builder and check whether he has received TDS credit in his Form 26AS, if so, it simplifies your case. If not, explain him the case and request him to give extension in depositing Form 16B without penalty. Worst Case Scenario : Re-Deposit TDS

    If you face any inefficiencies at IT Deptt, promptly file an RTI seeking details such as whereabouts of your TDS, procedure to rectify, time-frame for rectification and issue of Form 16B, name of AO (seek personal details to put them on backfoot) etc.

    Remember a Golden Rule for such cases : Time is Essence
    CommentQuote
  • I had same situation and same answer from TRACES contact center... I tried bank and TIN contact center as well but nothing helped... Finally i decided to pay it again as it was just 3000 and didn't find it interesting to spend more time an energy on this.

    Please share if you find out a way to get the money back... would love to donate this to Aam Aadmi Party...

    Originally Posted by phoenix83
    Thanks id2ard.

    You are right - I ticket 'Other' on OLTAS page after ticking 0021 and 800 as well.

    I cannot ask the bank for refund because it was transferred online 4 days back itself (I had made online payment). I do have Form 26QB as well as the Challan I had downloaded online, both of which show 0021, 800, PAN details etc. I called up TRACES today and surprisingly the guy told me himself that I must have chosen 'Other' which is why it is showing TDS as zero in Form 16B. However, he said as of now there is no functionality to take care of this and time will tell when this could be rectified or I could be able to move it from 'Other' to 'Income Tax'.

    I checked Form 26AS; it shows this transaction under "PART F – Details of Tax Deducted at Source on Sale of Immovable Property u/s 194IA(For Buyer of Property)", with all PAN/ date/ deductee details but with Rs 0.00 TDS deposited. So I cannot adjust it against anything tax liability as well :-(

    Now what should I do? How can I ask them for a refund? (the TRACES guy did not really give an option of refund)

    regards,
    CommentQuote
  • Adjustment of amount by Bank?

    Thanks again for sharing these helpful details.

    You mentioned that "for online challan, banks can rectify only Name & Amount". So can I decrease the amount paid as TDS (say to only Rs 10)? If yes, please let me know the procedure, so that I would do that within a week of TDS deposit (last Saturday).

    If this doesn't work, then I guess I would need to deposit TDS again. I really do not expect a builder like DLF to cooperate on such issues or extension of deadline, especially given my past experience with their customer care.

    regards,


    Originally Posted by id2ard
    OK, so TRACES guy has raised his hands (can't expect anything better from that poor soul..)

    Firstly, I hope your challan correctly reflects the TDS amount, if so, you're safe

    Your case has already gone beyond Bank's reach, since, only for physical challans, banks can rectify PAN, Assesment Year & Amount (upto 7 days) and Major, Minor Head, Nature of Payment (upto 3 months from challan deposit date)

    Yours being online challan, all the above details can only be rectified by concerned Assessing Officer (AO) at IT Deptt (for online challan, banks can rectify only Name & Amount, which is not your case)

    So, approach concerned AO with Challan & OLTAS printout (if you have) showing TDS deposit under 'Others' head and submit application with him requesting for correct credit and issue of Form 16B

    Meanwhile, deposit challan copy with builder and check whether he has received TDS credit in his Form 26AS, if so, it simplifies your case. If not, explain him the case and request him to give extension in depositing Form 16B without penalty. Worst Case Scenario : Re-Deposit TDS

    If you face any inefficiencies at IT Deptt, promptly file an RTI seeking details such as whereabouts of your TDS, procedure to rectify, time-frame for rectification and issue of Form 16B, name of AO (seek personal details to put them on backfoot) etc.

    Remember a Golden Rule for such cases : Time is Essence
    CommentQuote
  • Originally Posted by phoenix83
    Thanks again for sharing these helpful details.

    You mentioned that "for online challan, banks can rectify only Name & Amount". So can I decrease the amount paid as TDS (say to only Rs 10)? If yes, please let me know the procedure, so that I would do that within a week of TDS deposit (last Saturday).

    If this doesn't work, then I guess I would need to deposit TDS again. I really do not expect a builder like DLF to cooperate on such issues or extension of deadline, especially given my past experience with their customer care.

    regards,


    No, unfortunately it doesn't work that way. If your challan reflects correct TDS amount deposited by you (first question I asked..) then there is no scope of correction. As per rule, amount correction is permitted by bank only if challan amount is different from amount actually received by bank and credited to Govt account
    CommentQuote
  • Hi All,
    Please help me out on my query here
    I was absolutely unaware of this 1% TDS rule even though i watch news:(
    My bank made a payment of 41,40,000 to builder on 7th June 2013. I was not at all aware of this rule at that time.
    Neither bank or builder told anything about it.
    Now if i have to deduct a TDS on this amount, Will it attract interest ? 1% or 1.5%?
    Non Compliance:-
    In case of failure to comply with the provisions, interest and penalty would be imposed to the purchaser.
    Interest will be charged 1% p.m or part of the month for failure to deduct tax or short deduction of tax from the date the tax was deductible till the date the same is deducted.
    Interest will be charged 1.5% p.m or part of the month for tax deducted but not paid to the government from the date of deduction till the date of actual payment.

    Will my interest will be 3% based on 3 month (1%)?


    Thanks
    CommentQuote
  • Originally Posted by Uthey8329
    Hi All,
    Please help me out on my query here
    I was absolutely unaware of this 1% TDS rule even though i watch news:(
    My bank made a payment of 41,40,000 to builder on 7th June 2013. I was not at all aware of this rule at that time.
    Neither bank or builder told anything about it.
    Now if i have to deduct a TDS on this amount, Will it attract interest ? 1% or 1.5%?
    Non Compliance:-
    In case of failure to comply with the provisions, interest and penalty would be imposed to the purchaser.
    Interest will be charged 1% p.m or part of the month for failure to deduct tax or short deduction of tax from the date the tax was deductible till the date the same is deducted.
    Interest will be charged 1.5% p.m or part of the month for tax deducted but not paid to the government from the date of deduction till the date of actual payment.

    Will my interest will be 3% based on 3 month (1%)?


    Thanks


    http://taxmantra.com/tds-on-sale-of-immovable-property-sec-194ia-detailed-overview.html/
    TDS on Real estate Industry - TDSMAN Blog


    As per section 201(1A), in case of failure to deduct Tax or short deduction of TDS, interest @1% will be levied for every month or part of the month, on the amount of tax, from the date on which tax was deductible to the date on which the same is deducted. Further, when the buyer has failed to deposit wholly or partly tax so deducted, Interest @1.5% will be levied, for every month or part of the month, on the amount of tax, from the date of deduction till the date of actual payment.
    CommentQuote
  • Guys,

    This 50 lakh benchmark is only on BSP or does it include anything else as well?
    CommentQuote
  • Originally Posted by amit001
    Guys,

    This 50 lakh benchmark is only on BSP or does it include anything else as well?


    50 L benchmark is your Invoice value - inclusive of BSP, PLC, Parking etc..& not only for BSP .
    CommentQuote
  • Originally Posted by amit001
    Guys,

    This 50 lakh benchmark is only on BSP or does it include anything else as well?


    50 L benchmark is inclusive of BSP, PLC, Parking etc..& not only for BSP .
    CommentQuote
  • Originally Posted by MANOJa
    50 L benchmark is inclusive of BSP, PLC, Parking etc..& not only for BSP .


    Don't fotget, ST too is considerable.
    CommentQuote
  • Originally Posted by Domum
    Don't fotget, ST too is considerable.



    I know, i thought that i had covered S.T in my etc's.., but thanks for pointing it out .

    CommentQuote
  • Originally Posted by "MANOJa


    I know, i thought that i had covered S.T in my etc's.., but thanks for pointing it out .



    You hv to include service tax also I guess
    CommentQuote
  • Originally Posted by tanujmangla
    You hv to include service tax also I guess


    Yes, that is what i am saying, i thought that i covered ST in the etc...., i wrote in my original comment . I hope, things r clear now . :).
    CommentQuote
  • Originally Posted by MANOJa
    TDS on sale of Immovable Property (Sec 194IA) - Detailed Overview | Taxmantra
    TDS on Real estate Industry - TDSMAN Blog


    As per section 201(1A), in case of failure to deduct Tax or short deduction of TDS, interest @1% will be levied for every month or part of the month, on the amount of tax, from the date on which tax was deductible to the date on which the same is deducted. Further, when the buyer has failed to deposit wholly or partly tax so deducted, Interest @1.5% will be levied, for every month or part of the month, on the amount of tax, from the date of deduction till the date of actual payment.
    Hi All,

    My bank made a payment of 41,40,000 to builder on 7th June 2013. I was not at all aware of this rule at that time. Neither bank or builder told anything about it.

    Non Compliance:-
    In case of failure to comply with the provisions, interest and penalty would be imposed to the purchaser.
    A.Interest will be charged 1% p.m or part of the month for failure to deduct tax or short deduction of tax from the date the tax was deductible till the date the same is deducted.
    B. Interest will be charged 1.5% p.m or part of the month for tax deducted but not paid to the government from the date of deduction till the date of actual payment.


    I now assume that my NON-Compliance will fail in A
    So my calculations will be
    From July 7th (7th of next month)to 22nd October 2013, total of 107 days
    by rate of 12% annual
    it will be Rs 1456/-
    So this will be penalty for not watching news that matters:(
    CommentQuote