We are NRI and sold our apartment which was more than Rs 2 cr. The deal was signed in End Nov’20 It was sold to a company which decided to take a Bank Loan. They deducted TDS with details as below :-
1. 1% under section 194
2. 22.92% under section 195
This was a mistake but they advised will rectify this issue with the IT department and will notify us so we donot face any issue when we will file out returns to claim the TDS. Also they ensured will not file their returns till this issue is resolved. They made efforts to change the head to 195 i/o 194 , it did not happen. Then they tried to take refund and deposit it again, also it did not happen. We are now in a fix as to how to resolve the issue . Our queries are :-
1. As a company they have to file their quarter returns by 31st Jan’21. They have not done it. Till date they donot file it, we cannot claim out TDS, hence :-
a) Are they going to be penalized for late filing of their return. If so what kind of penalties will be levied
b) Can we report this to any authority for their not filing the return. Will it give us a benefit and put pressure on them.
c) Once they file their returns, which documents will they share with us which we can see in the system it has been done.
d) Can we still go ahead and file our returns in end April’21 based on 1% under 194 & 22.92% under section 195, advising IT department of this mistake and they will give us the credit OR we should avoid it.
e) Can we claim the TDS partially ie 22.92% first in this financial year. The Balance we can claim in later or in next financial year. Will it be a wise decision to do.
2. They have deducted the 22.92% against the TAN no and give us the challan copy ( challan no 281 ) . also they have done the same for the 1% where the challan copy ( challan no. 280 ) is shared to us. But the issue is still pending to be resolved.
3. Do advise us what kind of options we have in our hand and what shall we do to close this issue.