Can TDS on sale of immovable property exempted if re-investing in new property?

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  1. Sunder

    Sunder New Member


    I have sold a self-owned immovable property and the buyer has not deducted and paid the 1% TDS on sale value to IT dept as per Section 194-IA. I have re-invested the whole of the sale value into another immovable property so as to claim exemption from long term capital gains under under Section 54F. Please help understand the following -

    1. Can exemption be claimed to paying TDS @1% as the whole sale value is re-invested into another property and exemption claimed under Section 54F?

    2. If TDS @1% is a must inspite of exemption under Section 54F, how to pay it now since the buyer has miss to pay it - Can the seller pay it instead? Please advice.

  2. Manoj Mehra

    Manoj Mehra Active Member

    1. TDS Deduction on Property @ 1% is mandatory in all cases irrespective of whether you claim exemption or not.
    2. The buyer is required to deduct the TDS and deposit it. In case he has not deducted the TDS and paid you the full amount, you can pay him back the TDS amount and tell him to deposit the TDS.
  3. Anish Goel

    Anish Goel New Member

    It is mandatory to deposit the TDS. If the TDS has not been deducted and deposited earlier, it has to be deposited now with a interest @ 1.5% p.m. for each month of delay.
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