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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. TDS/TDS-In­tro­duc­tion.php

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