• TDS on sale of property

We are 2 brothers and 2sisters.We have sold our ancestral plot@ 65Lakh Each beneficiary is getting less than 50 Lakh share.Are we supposed to pay TDS 1percent on individual share?
S.Divakar
Asked 1 year ago in Income Tax

It's a controversial situation there have been judgements where it has been argued that the consideration mentioned in the section is for each person.

However as per my belief the consideration mentioned in the section relates to consideration relating to one property hence if it's above 50 lakh you need to deduct TDS.

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
3875 Answers
51 Consultations

5.0 on 5.0

Hi

 

Since you have sold the property, TDS is not applicable to you.

TDS is to be deducted by the buyer who is making the payment.

 

It has been held in many cases that TDS won't be applicable in such case as individual share does not exceed 50 lacs.


 

However it remains a litigative position. It is advisable that the buyer deducts TDS @1%. 

 

You may claim refund of such TDS while filing your ITR provided you have no tax liabilities.

 

 

Lakshita Bhandari
CA, Mumbai
5557 Answers
649 Consultations

5.0 on 5.0

Hello,

 

Note that the buyer is required to deduct TDS, not the seller.

As per various case laws, it is held that No TDS is required to on sale of the property if the sale consideration of each co-owners not exceeds Rs. 50 Lakhs. Not

Though it is a litigation matter. Advisable for your buyer to deduct the TDS for both the sellers. The Sellers would be able to claim the refund as per their tax liability.

 

I hope that this answer satisfies your requirements.

 

Regards,

CA Hunny Badlani

Hunny Badlani
CA, Madhya Pradesh
2583 Answers
12 Consultations

5.0 on 5.0

Dear Sir,

 

Hope you are doing well !!

 

TDS deduction is the responsibility of the buyer.

 

No TDS is required to be deducted if sale consideration is less than Rs 50 lakhs

Payal Chhajed
CA, Mumbai
5131 Answers
185 Consultations

5.0 on 5.0

No, TDS is applicable when an individual share is more than 50 Lakhs 

Vidya Jain
CA, Kolkata
953 Answers
48 Consultations

4.8 on 5.0

According to me, since value of Property sold is more than Rs. 50 Lacs, TDS provisions will get attracted and buyer will have to deduct 1% TDS.

Bhagyashree Kankaria
CA, Pune
40 Answers
11 Consultations

5.0 on 5.0

Hi,

TDS is to be deducted by the Buyer and not the Seller 

Pradeep Bhat
CA, Bengaluru
542 Answers
71 Consultations

5.0 on 5.0

Hello Sir,

 

Buyer is required to deduct the TDS, not seller.

 

No, you are not required to pay TDS 1% on individual share as it is below 50 lakh.

Karishma Chhajer
CA, Jodhpur
2439 Answers
27 Consultations

5.0 on 5.0

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