Any person purchasing immovable property of Rs. 50 lac or more is required to deduct tax @1% from the payment made to seller. You will deduct TDS and not seller.

Don`t make such forge deal. NO surety, he will pay you 9 lacs. If sale amount entered in sale deed is rs. 50 lacs, than you cannot fore him to return 9 lacs. And such kind of agreement is illegal.

No support of law.

Further you have to pay extra stamp duty on 9 lacs.

Yes or No, its totally depends upon the Index figure of Capital Gain or Loss after the selling amount. Here we will require his date of purchase of flat and today's registration date of sell of the flat.

Than later the Index figure can be counted and how much tax will be applicable that will known to you.

Secondly if he has invested in property before this selling transaction that from last one year till next 2 years he can save the tax from it.

For the purpose of TDS, payment made for acquisition of immovable property would also include other charges incidental to the purchase of the property.

Such charges include club membership fee, car parking fee, electricity and water facility fee, maintenance fee, and advance fee.

2)The TDS is to be deducted @ 1% of the total sale consideration. However, TDS needs to be deducted @ 20%, if the deductee does not furnish PAN. No tax is deductible where the consideration paid or payable for the transfer of an immovable property is less than Rs 50 lakh.

You may have to compromise with the seller on this because he has to suffer the tax on the outgo of the huge amount without any reason. 

Alternately you can avail bank loan only to the extent of sale consideration amount and can borrow the additional amount from local sources. 

1. Let the seller give you a DD for Rs. 8,50,000/-on the day of registration of the property for Rs. 50 Lakhs.

2. For a property costing Rs. 50 Lakhs and above, you have to deduct 1% of the sale consideration and the remaining amount only you have to pay to the seller. This 1% is towards Income Tax, as per rule u/s. 194 1A. 

3. One percent of Rs. 50 Lakhs is Rs.50,000/- and this is the money he is asking from you regarding the Income Tax U/s. 194 1A.

4.  Normally the seller has to bear this 1% towards Income Tax. However, since you are not registering the property for Rs 50 Lakhs and only registering the property for Rs. 41 Lakhs, the seller is asking from you.

5. At the time of registering the property itself, you have to produce challan for having paid 1% of the sale consideration, since it's Rs.50 Lakhs. In such a case, you need not pay the seller Rs. 50,000/-, since you would have already paid this amount to Income Tax U/s. 194 1A from your pocket.

He needs deduct the applicable TDS as the income tax regulations. 

- As per Section 194-IA , when a buyer buys immovable property i.e. a building or part of a building or any land other than agricultural land , costing more than Rs 50 lakhs, he has to deduct tax at source (TDS) when he pays the seller. 

- Further , the buyer has to deduct TDS@1% of the total sale consideration and not the seller. 

- Further , No. TDS is required to be deducted if sale consideration is less than Rs 50 lacs, and TDS should be  paid on the entire sale amount.

- Hence, you should apply for a loan amount less than 50 lac i.e 49.5 lac to save the tax on your end.

- Further, the seller is not sure about the rules of income tax , you should aware him that this 50,000 , the buyer will have to deduct and not the seller from the amount of Rs.50 lac. 

- For the extra amount, you should  take an undertaking from the seller , and better take a post dated cheque for the said extra amount , and return the same at the time of receiving extra amount from him . 

I don't think he will return you the amount. He will take it as he cannot be indicted for it as he can say that he sold you the apartment in 50 lakhs.

He doesn't have to pay any tax for this and he is taking his cut for this service.

You should take a separate loan for it.

Get an registered agreement done with him about giving you the 9 lakhs cheque, yes tax will be deducted on his side

1. Section 194-IA postulates that when sale consideration of an immovable property exceeds Rs.50 lakhs, the buyer has to deduct tax at source @ 1 % of the total sale consideration.

2. No TDS is to be deducted if sale consideration is less than Rs 50 laKHS, and TDS is payable on the entire sale amount.

3. You should have applied for loan amount under 50 lakhs.

4. TDS mentioned above has to be deducted by the buyer, not seller.

1. It will be a double jeopardy for you:
a) You will be liable for loan of 50 lakhs
b) You will be liable for 100% Income Tax on 9 lakhs which will receive from seller
c) IF investigation takes place, THEN you as Loan receiver will be held liable for prosecution for Cheating the Bank.
d) IF seller does not pay you THEN you have no legal option against him, since he will claim he has received the money for furniture & fixtures attached to the flat.

2. Hence, you are advised to avoid such short cuts and avoid getting entangled in legal issues.

1. Yes capital gain tax will be applicable to him as sale consideration shall be shown as 50 lakh or above so for him he has to pay tax on complete amount. Make sure you receive the amount before handing over bank demand draft as after that he can deny same showing it as sale consideration, you will have no ground to contest in court also then.

The bank would release the loan amount through a cheque drawn in favor of the seller and the bank's representative would come to the registrar office at the time of registration. so better take post dated cheques of surplus amount from seller and the TDS is to be deducted. 

1. Yes it is true that seller have to pay taxes on the consideration recieved from selling the property.

2. You should make a separate agreement for return of money from seller but dont show it as sales consideration show it as some other type of consideration.

Yes tax will be levied upon the seller.