• Real Estate Sale 1% TDS refund

Hi. I had sold my property (house in mumbai) about 3-5 years ago and had paid the 1% TDS that is required. I understand that there is a process to get this back. Can someone please elaborate the process? Also is there any time duration by which this amount needs to be claimed. Thanks
Asked 6 days ago in Capital Gains Tax from Ernakulam, Kerala
Hi,

You mean to pay buyer has deducted your TDS and deposited with the government. Am I right?

Did you file the return in that year showing capital gain? If yes, you might have claimed the TDS in that year. TDS should have been claimed in that year. You can't claim it now.

However, if the amount is huge and return has not been filed for that year, you can write to the commissioner of income tax for condonation of delay and upon approval you can file return and claim back TDS.
Abhishek Dugar
CA, Mumbai
3456 Answers
156 Consultations

5.0 on 5.0

It needs to be claimed when you have filed your return of income? If you had not claimed in your return of income at that time then it's your fault or the fault of the person who filed your return. Have you shown such capital gain in your return of income.
However if you have not claimed that TDS but had filed your return of income then you still have a chance to get the refund if the capital gain was in A.Y. 2015-16/ FY 2014-15 or after that.
You can still claim your TDS refund by filing a rectification request and then either filing the return again u/s 154 with correct TDS claim or claiming TDS mismatch.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you
Naman Maloo
CA, Jaipur
284 Answers

5.0 on 5.0

Hi,

Hope you are doing well !

You can't claim it now if you have already filed the return of that year.

If you have not filed the income tax return of that year then you can file a condonation application to the Principal Commissioner of Income Tax (Pr. CIT) or the Commissioner of Income Tax (CIT). The Pr. CIT or the CIT will evaluate the claim on the basis of the merits of the genuine hardships and then may decide upon the refund of the tds. The Pr. CIT or the CIT may order the assessing officer to check the genuineness of the claim or even scrutinize the assesse for the claim made.

Thanks & Regards,
Payal Chhajed
Payal Chhajed
CA, Mumbai
722 Answers
2 Consultations

4.8 on 5.0

HI,

The process of claiming the tax credit/refund is to file the income tax return pertaining to the year in which such TDS has been deducted or paid.

In your case, you sold the property few years ago, which means the TDS would have got deducted in the past year. You could claim the same only in the income tax return of that year. If you have already filed the return for that year without claiming this, then you need to revise. But since the dates of revision have also gone time barred, then in such case, the only option left is to file the rectification.

For rectification also, there is a time limit of 4 years. If the same is still available, then you may go ahead.

Thanks
Damini
Damini Agarwal
CA, Bengaluru
269 Answers
13 Consultations

5.0 on 5.0

Dear Sir, 

TDS can be claimed only by filing your return of income for the particular Financial in which you have sold your property. As you have sold the property before 3-5 years you need to file the Income Tax return for that particular financial year. Now, there is no option to file your income tax return which are related to previous years. So, there is no possibility of getting your TDS back.
Praneeth Thunuguntla
CA, Guntur
51 Answers

Not rated

Hi,

- TDS @1% was deducted by the buyer at that time. Download Form 26AS of that particular A.Y. and recheck the figure. Also collect Form 16B from the buyer.

- To claim the credit of the TDS deducted by the buyer, you were required to file the ITR of that particular A.Y. If not filed, apply for the condonation of the delay with the Pr.CIT or CIT and after the approval, file the ITR accordingly.

Thanks
Vivek Kumar Arora
CA, Delhi
1421 Answers
31 Consultations

5.0 on 5.0

Hi,

First recheck the form 26AS for TDS deducted by buyer then claim the credit of the TDS deducted by the buyer.
If you have not filed ITR of that year, apply for the condonation of the delay with the Pr.CIT or CIT and after the approval, file the ITR accordingly.
Karishma Chhajer
CA, Jodhpur
295 Answers
1 Consultation

5.0 on 5.0

The amount should be claimed in the same year of the transaction by filing your return and declaring the capital gains. I am assuming that you would have already claimed the same in the same year when you filed the return. 
If not (not claimed and return not filed), then you can request the commissioner of income tax for condonation of delay and after the approval, file the ITR accordingly and claim back the TDS.

Regards,
Nikhil
Nikhil Khanna
CA, Mumbai
1188 Answers
9 Consultations

5.0 on 5.0

Hi,

You can't claim the TDS back which has been deducted 3-5 years ago.

Further, did you file return at the time of sale of the property?
Lakshita Bhandari
CA, Mumbai
2017 Answers
63 Consultations

5.0 on 5.0

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