I'm an NRI living in Dubai and recently sold a residential property in Pune. The buyer deducted TDS at the time of payment, which I expected. However, when I checked the payment records and later downloaded my tax details, it appears that TDS may have been deducted twice on the same transaction.
One deduction was made when the advance payment was released, and another deduction seems to have been made on the final payment. The total TDS deducted is much higher than what I was expecting based on the sale value.
I've already checked my bank statements and compared them with the TDS entries, but I'm still confused about whether this is a reporting issue or an actual duplicate deduction. I haven't filed my Indian Income Tax Return yet because I want to understand the correct process first.
Has anyone faced double TDS deduction while selling property or receiving NRI income in India? Were you able to get the excess amount refunded? Did you need to contact the buyer first, or can this be resolved while filing the income tax return?
I'd appreciate hearing from anyone who has experienced something similar. I understand every case is different, but knowing what steps others followed would really help.
I'm based in the UK, and I noticed duplicate TDS entries on rental income a couple of years ago.
Before filing my return, I contacted the person responsible for deducting the tax. They reviewed their filings and found an error in the quarterly TDS statement. After they filed a correction, the tax records were updated.
If the TDS has actually been deposited twice, the amount can generally be adjusted or claimed while filing your income tax return, depending on the circumstances. I'd recommend confirming the records first because sometimes duplicate-looking entries are simply reporting corrections.
I had something similar happen last year when I sold an apartment in Bengaluru. Initially, I thought TDS had been deducted twice, but after checking my tax records, I realized one of the entries had been revised later by the buyer.
The first thing I'd suggest is downloading your Form 26AS and checking the Annual Information Statement (AIS). Those records helped me understand whether it was actually a duplicate deduction or just multiple entries for different payments.
If the buyer has genuinely deposited excess TDS, they may need to review the TDS return they filed. In my case, speaking with the buyer's accountant cleared up the confusion.
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I would first verify whether the duplicate deduction is reflected in both your Form 26AS and AIS.
Sometimes buyers deduct TDS separately on advance payments and final payments, which is correct if those payments are made at different times. The important thing is whether the total TDS matches what should have been deducted.
If the figures don't add up, I'd contact the buyer before filing your return. If there's an error in their TDS filing, it's usually easier to resolve it early rather than after your return has already been submitted.
Requirements and procedures can change, so it's worth confirming the latest process with a tax professional if the amounts are significant.