How to deal with new sale deed when the property was bought before tds rule exists and now selling

but based on the scenario you've provided, here's a general understanding:

1. TDS on Sale of Property in India:

   • As per provisions of the Income Tax Act, 1961 in India, a buyer is required to deduct TDS when buying a property. The rate is 1% if the sale consideration of the property is more than or equal to Rs. 50 lakh. The buyer has to deduct this TDS before making the payment to the seller and deposit the same to the government.

2. Transaction Overview:

   • Party-A has essentially made a capital gain on selling the property rights to Party-B, considering they purchased the property for 53L and are selling it for 86.5L.
   • Party-B will be making the payment of 86.5L to Party-A. Hence, based on the TDS provisions, Party-B would have to deduct TDS on this amount.

3. TDS on Payments Made Before 2013:

   • Since Party-A made payments to the builder before the TDS rule was introduced in 2013, those transactions are not bound by this rule. Only the present transaction between Party-A and Party-B should be subject to the TDS rule.

4. TDS Payment and Documentation:

   • Party-B should deduct 1% TDS from the 86.5L (or the applicable rate based on the current laws and considering the parties involved) and deposit this to the government under Party-A's PAN.
   • Upon depositing the TDS, Party-B will receive a TDS certificate which should be provided to Party-A as proof of deduction and deposit.
   • The sale deed should ideally reflect the correct transactional amount and the TDS deduction and payment details.

5. Registration Concerns:

   • If the builder is facilitating the registration, it is essential to ensure that the transaction is transparent and reflects the true nature of the sale. The sub-registrar will be mainly concerned with the proper payment of stamp duty and registration charges. The TDS compliance is a separate matter handled by the tax department.
   • As long as the TDS is correctly deducted and deposited, and the necessary TDS certificates are obtained, the registration should not be impacted by whose PAN the TDS is deposited under. However, it's crucial to clarify this with a local legal expert familiar with property registration procedures in your specific jurisdiction.

6. Consultation:

   • Given the complexities and significant amounts involved, it's highly recommended to consult with a chartered accountant and a property lawyer in India. They can guide you through the TDS compliance and ensure that the sale deed is appropriately drafted.

Remember, while this gives an overview based on the details provided, each situation can have nuances that might affect the appropriate legal and tax steps to be taken. Always consult with professionals for specific guidance.

Expert Mr. Chetan Parmar has given a clear  explanation of the situation  as well has given proper opinion as well as the suggestions to move on.

As far as B is concerned, he is the buyer, and he is buying the property which is valued above Rs. 50Lakhs, hence it becomes his duty to deduct the TDS @1% of the sale consideration amount and remit the same to the government within one month from the date of deduction

The buyer cannot dance to the tunes of the seller which is violating the law of the land.