We have purchased a flat (apartment) from individual seller for agreement value of 54 lakh. We have paid the seller the margin amount (of bank loan) and registration of sale is done in Deputy Sub-registrar’s office. As per section 1941 IA of incometax, if the agreement value is more than 50 lakh, the Buyer has to deduct a Tax Deduction at Source of 1% while paying to the seller. Buyer has to deposit 1% tax on behalf of seller, and give the seller the Tax receipt. Seller can rebate this paid tax. Effectively, we have to pay the seller Cheques of 53.46 lakh and Tax receipt of 54000, which sums up to the agreement value of 54 lakh. Our seller is demanding additional54000, along with tax receipt. This is additional to the standard registered deal, because the TDS has to be paid from agreement value, not additionally. He is not ready to come to bank, to receive the remaining amount demand draft. We gave him the option to cancel the deal, but he says he will not return the margin amount. He is cheating us. What should we do? Name (Buyer): Rahul S Kulkarni, Miraroad (E), Thane, Maharashtra, India. Mobile: 982387xxx Seller- Sameer S Virani 8425090xxx

1. Either complete the deal as per government rules, ie with cheque of 53.46 lakh and tax receipt of 54000. 2. cancel the deal and return entire money.

Email Id: drrahulprostho@yahoo