How to correctly report 194Q transaction for movable property on ITR2

[rkumar]

Hoping I can get help from the Quicko community on this. This involves sale of movable property (art). This Quicko authored post nicely explains in detail how to report sale of movable property as capital gain transaction on ITR2. I am able to follow the capital gain portion and how to report it appropriately by following this post. But I do have question about the later part of ITR2 where the TDS and other details are captured.

The purchaser/buyer has reported this as a 194Q transaction. Let us say for example, the total transaction amount is Rs. 60,00,000. The seller’s 26AS shows this transaction 194Q with below details:

1. Total Amount Paid / Credited: Rs. 10,00,000 ( 60,00,000 - 50,00,000 of initial deduction)
2. Total Tax Deducted: Rs. 1,000 (0.1% of 10,00,000)

When we look at ITR2 form, towards the end, there is a section called “DETAILS OF TAX DEDUCTED AT SOURCE (TDS) ON INCOME”. Screenshot attached below for easy reference.

When seller is filing ITR2, how should this 194Q transaction be reported in above mentioned table? As a seller, I have two specific queries about reporting this 194Q in the above table

• What should be Gross Amount (11) ?

  • (a) Rs. 10 lakhs ? (as reported on 26AS) or
  • (b) Rs. 60 lakhs ? (actual transaction amount)

• What should be Head of Income (12) ?

  • (a) Income from other sources or
  • (b) Income from capital gains ?

[Surbhi_Pal]

Hi @rkumar,

While reporting the TDS details, you can mention the amount as reported in the From 26AS and the income head will be capital gains.

[rkumar]

Thank you @Surbhi_Pal.

Schedule TDS of ITR2 when filed initially was prefilled and showing the amount reported in Form 26AS => Rs. 10 lakhs. And the Head of Income was set to => Income from other sources. This is how I submitted ITR2 initially. But received below defectice return notice 139(9).

[rkumar]

continuation of above…

Hence looking for guidance around the Gross Amount field and Head of Income fields in Schedule TDS of ITR2.

The Income tax website does give me option to change the Gross Amount value. Please see below. Gross Amount field is also editable along with Head of Income field.

[Sakshi_Jain]

@rkumar You would have to fill 2 details regarding this transaction.

1. TDS details: where you need to fill details as per 26AS and just need to change the head of income to “Income from Capital Gains”

2. You will also have to report Sale of Immovable property under the Income head Capital Gains where the Full Value of consideration as per details mentioned above should be INR 60L and pay tax on actual capital gains.