I have purchased a flat worth 85 lakhs from 2 joint owners of the flat. How the TDS will be given effect by me for deduction of TDS and deposition of TDS to government. Pls suggest

Ans: Hi
Ignorance of law does not bring any relief to the flat owner. The penal consequences would apply in this case and the following provisions are applicable:

Penal Interest is applicable from the date on which the deduction was to be made. The rate of penal interest would be 1.5% p.m if the TDS was deducted but not paid and 1% p.m. if the TDS was not deducted.

Late Fee of Rs. 200 per day would be applicable from the due date for filing the TDS return in Form 26QB however this would be maximum upto the amount of TDS i.e. if the total TDS is say Rs. 1 Lakh and the late fee works out to Rs. 2 Lakhs then the late fee would be limited to Rs. 1 Lakh.

The above two amounts have to be paid along with the TDS amount while filing the Form 26QB

In addition to the above, if the TDS return has not been filed within a year then the Tax Officer could levy a penalty which could range between Rs. 10,000 (minimum) and Rs. 1 Lakh (maximum)

Ans: To make payment of TDS on purchase of Immovable property u/s 194IA in Form 26QB, person is required to do login to incometax.gov.in and under e-pay tax option is available to make payment.

Ans: The TDS (Tax Deducted at Source) of 1% on the sale of property exceeding Rs 50 lakhs is applicable on the full sale consideration. In your case, since the total sale consideration was Rs 5,973,000, the TDS of Rs 59,730 was deducted as per the guidelines. Based on the information you've provided, you might be liable for Capital Gains Tax. Capital Gains Tax is calculated based on the difference between the selling price and the indexed purchase price. The indexed purchase price adjusts the original purchase price for inflation over the holding period.
The tax on long-term capital gains is usually 20% (plus applicable surcharge and cess) after considering any exemptions or deductions available under Section 54 or Section 54F if you are not investing in another property or capital gains bonds.

To close the transaction and fulfill your tax obligations, you should consider the following steps:

a. Calculate Capital Gains: As explained above, calculate the capital gains based on the indexed purchase price and selling price.

b. Pay Capital Gains Tax: If you decide not to invest in another property or capital gains bonds, you will need to pay the applicable capital gains tax. You can do this by filling out the appropriate sections in your income tax return and paying the tax amount.

c. File Income Tax Return: Ensure that you accurately report the capital gains in your income tax return for the assessment year.

d. Keep Documentation: Maintain all relevant documents related to the property sale, purchase, and tax calculations for future reference

Ans: As per income tax provisions, a person who contributes money for the acquisition of money; will be considered as owner of property and required to deduct TDS at the time of payment of consideration to the seller.