My home loan was sanctioned from one bank on September 2012 but till now I have not given any request for disbursement. Recently, I have applied for home loan from another bank and it got sanctioned. Now I have asked the first bank to cancel the first home loan and refund the processing fee after deducting the standard charges. That bank, however, is telling me that the processing fee amount cannot be refunded. I want to know that if there is any provision for refund of processing fee from the bank after deduct- ing some standard charges.
—S Biswas Processing fee is charged to get the loan application processed and is towards the cost of processing your loan application. This fee is nonrefundable in most cases. If you examine the loan application form, you will most probably find a line in bold print that says that the processing fee is non-refundable.
So getting a refund of processing fee from your bank (The one you mentioned does not give home loans) seems very unlikely in your case. We have purchased a flat in Gurgaon which costs lakh.
lakh have already been paid by the end of May 2013. We understand that from June 1, 2013, the buyer has to deduct 1 % TDS from the installment to be paid to the builder and deposit it with the government. We will be thankful if the procedure is explained in detail mentioning the necessary forms number to be used for the purpose.
—KM Sharma There can be two interpretations. One is that if the agreement has been reg- istered and most payment made before June 1, 2013 then you need not deduct tax at source on the payments made on or after June 1, 2013. But a safer interpretation is that you will need to deduct tax @1% on the amount paid on or after June 1, 2013 (ie 10,000 in your case).
As per the recent Budget any person who buys any property has to deduct tax from the payments to be made to the seller @ 1% of the sale consideration. This has to be done either at the time of credit of the amount in the books or at the time of payment. Since individuals do not maintain any books of accounts, they have to
Rdeduct tax @ 1% at the time of payment. The tax so deducted has to be deposited with the government within seven days from the end of the month in which the payment for purchase of property is made. The payment has to be made in a special form number 26QB which is a challan-cum-return.
The details of the above challans have to be filled in online. The payment for the same can either be made online or offline in any bank. It is necessary to fill in the PAN details of buyer and seller both. In case you do not have the PAN details of the seller, you will have to deduct tax @ 20%.
The buyer has to issue a TDS certificate in form No. 16B within 15 days from the due date of filing the challancum-return.
Since this is little technical, I would advise you to take help of a professional chartered accountant. The payment has to be made through the website of NSDL. An e-tutorial on step by step guide for payment of TDS on property transaction is given on the following link. https://www.tin-nsdl.com/ TDS/TDS-Introduction.php