LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Moni (Engineer)     06 January 2025

Tds deduction on flat purchase

I purchased a flat and signed an ATS with party A and paid 20% amount according to ATS . Now bank refused to approve loan on ATS due to issue that party A Agreement with builder was signed after my ATS and mentioned party A don't have the valid ownership of flat that I later come to know from bank. Builder now mentioned they could create fresh BBA at 80% amount and registry will be done at this amount only. BBA was signed between me and builder now and Bank approved the loan on this BBA.

I have following questions

1. I paid the tds according to this new BBA and on 80% amount. I hope I will not attract any legal issues on that?



Learning

 5 Replies

Lavanya Malhotra   06 January 2025

Paying TDS on 80% of the transaction value as per the newly executed BBA with the builder aligns with the applicable tax regulations, provided it reflects the actual consideration agreed upon in the valid agreement. To ensure compliance and mitigate any potential legal concerns, it is advisable to maintain a comprehensive record of all related documents, including the ATS, BBA, TDS payment receipts, and bank correspondence.

For a thorough review and assurance, consulting a tax professional or legal advisor is highly recommended.

Feel free to contact at - prachi@lawfinitysolutions.com or contact me at - https://wa.me/+919810483059

T. Kalaiselvan, Advocate (Advocate)     06 January 2025

You have to deduct the tax and not pay the tax on behalf of the seller, hence you clarify what exactly you want say

Moni (Engineer)     06 January 2025

I deducted the tds from 80% and then paid the builder rest amount and filed tds for 80%.

But the previous 20% that went to different party A was initially I got involved in ATS.I deducted tds on 20% during that time but not filed as loan was not happening . 

Now I was really confused about that 20 % tds as during filing tds it asks for seller and in my case two different independent parties got involved party A through ATS and then the builder through BBA.

 

 

 

Dr. J C Vashista (Advocate )     07 January 2025

Fresh BBA executed shall be sole criteria to calculate and attract the provisions of TDS, however, payment of 20% amount to another person is irrelevant on the subject.

T. Kalaiselvan, Advocate (Advocate)     07 January 2025

Whatever, as you have already deducted tax from some payment made to a third person, it becomes your duty to remit the deducted tax to government within the stipulated time period failing which you will liable for legal consequences.


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register