Tds on purchase of property
CA Shraddha Vora
(Querist) 20 April 2016
This query is : Resolved
In respect of TDS u/s 194 IA , kindly clarify the following:
1.When is the tax to be deducted in case where on if the agreement is made (whether or not registered) and payment is made for next many years in installment upon demand from the seller? i.e whether credit would deemed to be given to the seller and TDS to be deducted there upon ?
2.What if the buyer fails to deduct TDS and in turn non payment to the government account as well?
3.Will the benefit of proviso to Section 201 (1) and 201 (1A) can be taken as shelter by the above buyer?
4.Since Tax is never deducted and thus not paid to government department, filling TDS return will still be applicable and thus late filling fees of RS.200 per day also be applicable?
5.What if the above happens because of a genuine absence of knowledge with regards to this provision?
Kishor Mehta
(Expert) 20 April 2016
TDS has to be deducted at the applicable rate at the time of making payment, and the amount has to be paid to the Treasury.
If the payment is made in installments then the applicable percentage has to be deducted from the amount of the installment and paid to the Treasury.
Else heavy penalty is levied. No excuses are accepted.
Good Luck,
Kishor Mehta
Rajendra K Goyal
(Expert) 21 April 2016
CA club of India is better platform for such queries.
