Deed of rectification should be executed to rectify mistake in sale deed
it should be stamped and registered
How do I rectify TDS amount in registry
I am from Jaipur and purchased a plot recently for 65 lacs. We deducted 1% TDS and mentioned the same in the registry. While depositing the TDS, I came to know that TDS rate is 0.75% right now. There is difference of around 16250. I talked to deed writer and he suggested to pay this amount by cheque and write a Anubandh Patra (agreement) on Rs 500 stamp with both parties signing on it and that will be part of the property documents and it will work. I wanted to check if this will work or we should go for correction deed. Please suggest
Asked 4 years ago in Property Law
Religion: Other
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9 Answers
You can make the agreement as suggested
You have already deposited the TDS at 1% with the IT department
The excess TDS can be claimed by the seller by seeking a refund in his IT returns
So that excess will come back to the seller
So why are you giving the difference cheque to the seller again?
If its agreed in the agreement then once the seller gets credit of the excess TDS, he will reimburse that to you, then it's fine to give the difference cheque
I mean that we mentioned 1% in the deed while I was able to deposit only 0.75% on income tax portal as that was not allowing to deposit more so there is shortfall of payment by 16250 which I need to pay now. Should I do correction of deed for this or go for notarised agreement on Rs 500 stamp
Asked 4 years ago
Opt for deed of rectification
Dear sir/ma'am,
It would be in your good interest to go for a deed of rectification. Thank you.
The rate is 0.75% for transaction carried out from 14 May 2020 to 31 March 2021
NO need to do anything, as suggested by deed writer is bad advise.
Keep this rs. 16250 you. No illegality committed.
This is the case of excess payment of 25% per cent of tax. By payment of 25% per cent excess you sale deed is not affected. There is no need the correct the sale deed. You are entitled to refund of 25% from the IT. There is CIRCULAR NO. 2/2011 [F.NO. 385/25/2010-IT(B)], DATED 27-4-2011 for seeking refund of excess tds paid. The Section is 200A.
- Since, you deposited the required TDS @0.75 % as per Income Tax , but in the deed there is mentioned 1 % , it means you have not paid less tax , hence no need to pay the difference amount only to rectify the deed.
- Further , legally you can rectify the deed after registering Rectification deed without paying any stamp duty.
The agreement or whatever document the deed writer suggests cannot be included to the existing registered documents just like that.
A rectification deed has to be executed to rectify this error in the registered sale deed.
Instead you may pay the entire amount to the government, and ask the vendor to file ITR and claim refund of the excess amount deducted by you.
Since the income tax portal is not accepting the deposit of the excess amount deducted , you may return the amount to the vendor and get an acknowledgment of the receipt of the payment made towards the excess deduction of TDS.
You can attach the receipt to the documents you possess in order to avoid confusion at a later date.