How to Claim TDS Refund on Sale of Property – TDS Refund

Today in this Guide we will discuss about How to Claim TDS Refund on Sale of Property. as you know that 1% TDS is deducted by the Buyer when you Sold any kind of the Property where value is more than 50 lakh rupees. Now this TDS is treated just like Advance Tax so you can easily Claim TDS Refund during the ITR Filing with some Conditions.

is TDS on Sale of Property Refundable ?

Yes its Refundable with Some Condition during the ITR Filing. TDS on Sale of Property can be claimed as Refund if your tax liability including capital gain or loss from Property is less than from TDS Deducted, in that case 100% TDS will be Refunded. Even if you do the Tax Planning with MyOnlineCA Consultancy then you save lot of the taxes with 100% TDS Refund.

Who can Claim TDS Refund on Sale of Property

Buyer Deduct the TDS on Purchase of Property through 26QB But Only Seller can Claim TDS Refund on Sale of Property. TDS Deposit is Buyer liability but its can be claimed by only the Seller. Even at the time of the Property Payment Buyer Deduct the TDS Amount so ultimately seller get less amount in Total Sales Consideration.

How to Claim TDS Refund on Sale of Property

First of all after the Deduction of the 1% TDS you need to Collect the Form 16B from the buyer and also check with Form 26AS. Once your TDS has been Showing then you need to file ITR-2 or ITR-3 Form for the same. in the ITR-2 Form you need to First of all fillup the Capital Gain Schedule & Other Relevant Income Schedule.

When TDS Refund on Sale of Property Arise

in the Following Conditions you can claim TDS Refund on Sale of Property –

a) if your Total Taxable Income is less than 7 lakh Rupees in a year including the Capital gain on Property or Salary etc then there is no Tax Liability has been Arise and your 100% TDS on Sale of Property is Refundable.

b) Lets’ say your Tax Liability has been Arise 10000/-INR on  Total Income including the Capital Gain or Salary or Other Income but your TDS on Sale of Property has been Deducted 50000/-INR. in that case you will get 40000/-INR TDS Refund on Sale of the Property.

So simply first of all your all TDS will be set off against the tax liability and if your tax liability is less than the TDS then you will get the Refund on the same. So Hope now all doubts regarding TDS on Property Sale Refundable or Not has been Solved.