Hi All,


I have recieved a demand of Rs.73000 from TDS for the late payment of 1% TDS on purchase of Property more than 50Lac. Same kind of demand is recieved by many in my society as my builder has never informed us about this kind of TDS rule and had taken full payment at the time registration.

He informed us about this after around 8 months and we paid that in last year in August for which IT department has slapped such a huge amount to everyone of us in society. He took all that money and enjoyed interest/investment on that money and we are the one who got penalty.

What options do we have now? This is really painful to us now. Tax payable is someone else and we are the one who are victim here. There is really no awareness of this law at least in common people like us.

Please help/suggest.



Posted 1 year, 7 months ago by Rajeev Verma

Hi Rajeev,

Your pain is understandable, but it is duty of the buyer to deduct tax and pay to account of government. Section 194IA requires that buyer of property deduct 1% tax on transaction value.

Tax should be deposited within 7 days of month following the month of deduction, while paying the details of buyer and seller are to be entered, once the payment with details is made, return is deemed to be completed.

In your case you have received notice for demands under section 200A, 234E for late filing and interest. It is sad to inform that there is no route to escape this demand and it has to be paid otherwise the demand will be reflected in your IT database and setlled against any refund or recovered by any other means.


Posted 1 year, 7 months ago by CA Pulkit Sharma

Thanks Pulkit Sir for the reply. 

But is there no way we can communicate it to IT department and lower this penalty amount?


Thanks in advance.

Posted 1 year, 7 months ago by Rajeev Verma

You can try calling CPC helpline number and check if they can reduce it, chances are low but you can try.

Posted 1 year, 7 months ago by CA Pulkit Sharma

Dear Pulkit,

Similar thing happen to me due to unawareness of this law but good part is builder have atleat deposited the 1% TDS after 2 months of sale deed.

As amount is little around 8000 (including interest and late fees), so i am avoiding to take this matter further to builder on delaying the payment.

Pls guide me how can i pay this amount online. I have read your other blogs and as per your last statement on URL (https://www.tin-nsdl.com/index.php) there is section "Demand Payment".

Now on Traces i can see notification of correction of 26QB is avaiable, is the process change now?

Pls help.


Regards, Manoj




Posted 1 year, 6 months ago by Manoj kumar

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