Hi, I have purchased a re-sale flat from a seller(direct owner) in Dec-2018.Seller has made sale & construction agreement with builder during pre-launch in 2015 but didn't go for registration as he wanted to sell in future. I have paid 62 lakhs to the seller(22 lakhs in cheque, 40 lakh existing loan of seller closed with SBI) and my registration is now complete with the builder. My sale deed is with builder's name. My doubt is on whose PAN should i deposit the TDS 1% ? builder or seller? Thanks, Sriharsha
As per the deed builder is the seller TDS will be deducted in his name and in the deed do mention the payment made Via cheque.
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Thank you
Hi,
It should be from PAN number of buyer.
Seller can pay TDS from his account under buyer's PAN.
Hi,
It should be from PAN number of buyer. Yes, seller can pay TDS from his account under buyer's PAN.
It should be from PAN number of buyer. Yes, seller can pay TDS from his account under buyer's PAN.
Hi,
- You need to draft a tripartite agreement and deduct TDS on account of seller and not builder.
Thanks
Hi CA experts, The views expressed by Naman sir & Vivek sir are different & opposite.which one should i follow??
I think you first need to check whether the seller was having the rights of the property i.e. was he having an agreement with the builder and if he is giving up his right, in this case you need to deduct TDS of seller otherwise TDS will be deducted of the builder.
Thank you
The legal route.
Hi,
Hope you are doing well !!
You need to deposit TDS on PAN account of seller.
It is advisable that to deduct the TDS on seller PAN account.
TDS is deducted from the person to whom income is paid ie in your case you have paid to seller. Further, the builder has no role as he is not earning any income.
Hi CA experts, I want to add some more information to make things more clear. Previous owner had made Sale & construction agreement with builder(with which i assume he has rights of the property) I had made assignment agreement including both seller/builder(So that all parties involved in deal are clear). Finally my sale deed is done with builder. I think most of you have advised to deduct TDS on seller(not builder) as he has received the money. Please let me know if my understanding is correct.
Yes you are correct.
Here there can be an issue because the seller is having sale and construction agreement so he might have deducted TDS of builder and now he is transferring that rights to you so I don't think you need to deduct TDS of seller as there is just transfer of right in property and 194IA ask to deduct TDS in case of transfer of property.
Therefore I don't think any TDS is required on such transaction.
Hi
TDS deduction under section 194IA is always done on payment basis.
You need to deduct TDS of the seller and not the builder since you are making the payment to him and not to the seller.
Further, the motive of TDS deduction is to receive taxes in advance for a taxable transaction. Here, the seller shall have taxable capital gains for which TDS shall be deducted by you.
Hi,
Yes, your understanding is correct.
Yes, taxes should be deducted from the one who earns the income which is the seller in your case.
Hi
Yes ,your understanding is correct ,you have to deduct tds on seller.
Hope it helps
Yes Sir, your understanding is correct.