u/Rithwik32

Hello everyone,

I am seeking guidance on a Section 195 TDS issue related to a proposed property purchase from an NRI seller.

Facts:

• I deposited TDS under Section 195 for the purchase of a property from an NRI seller.
• The TDS amount deposited was approximately ₹2.29 lakh.
• Subsequently, the transaction was cancelled and the property was never registered in my name.
• I have a duly executed cancellation agreement and supporting documents.
• No ownership rights were transferred to me.
• The seller has since sold the property to another buyer.

My questions are:

1. Since the transaction never materialized, is there any legal procedure through which I can recover or obtain a refund of the TDS amount deposited?
2. Should Form 27Q be filed in such a situation, or is there any alternative compliance/correction process?
3. The seller is now requesting that I file the TDS return in a manner that allows the tax credit to be given to his NRI relative, and he has offered to reimburse me separately. Is this legally permissible, or could it create complications for me in the future?
4. Has anyone dealt with a similar situation involving Section 195 TDS on a cancelled property transaction?

I would greatly appreciate guidance from tax professionals or anyone who has handled a similar case.

Thank you.

Tags: #Section195 #TDS #NRI #IncomeTax #PropertyTransaction #Refund

Hello everyone,

I am seeking guidance on a Section 195 TDS issue related to a proposed property purchase from an NRI seller.

Facts:

• I deposited TDS under Section 195 for the purchase of a property from an NRI seller.
• The TDS amount deposited was approximately ₹2.29 lakh.
• Subsequently, the transaction was cancelled and the property was never registered in my name.
• I have a duly executed cancellation agreement and supporting documents.
• No ownership rights were transferred to me.
• The seller has since sold the property to another buyer.

My questions are:

1. Since the transaction never materialized, is there any legal procedure through which I can recover or obtain a refund of the TDS amount deposited?
2. Should Form 27Q be filed in such a situation, or is there any alternative compliance/correction process?
3. The seller is now requesting that I file the TDS return in a manner that allows the tax credit to be given to his NRI relative, and he has offered to reimburse me separately. Is this legally permissible, or could it create complications for me in the future?
4. Has anyone dealt with a similar situation involving Section 195 TDS on a cancelled property transaction?

I would greatly appreciate guidance from tax professionals or anyone who has handled a similar case.

Thank you.

#Section195 #TDS #NRI #IncomeTax #PropertyTransaction #Refund