Income Tax Department — TDS demand on property purchased 2.5 years back

Address:	Thane, Maharashtra, 400604
Website:	www.incometaxindia.gov.in

I have purchased a property in Thane in Nov 2013 with the agreement cost of Rs.72, 00, 000. Nobody told me or I was not knowing to deduct 1% TDS from the seller from the payment I did it to the seller. After around 2.5 years of my purchase of the property, income tax department is sending me TDS intimation with subject of the email is "CPC (TDS) Follow up: 26QB Statement not yet filed for Purchase of Property during FY 2013-14". Also it has been informed me that a late fee of Rs.200 per day is liable to pay by me. TDS payment can be done by me but late fees would be very huge and around 1.8 lakhs. Being a regular tax payer, it is a big burden on me to pay the late fees. I really don't understand why Income Tax Department is so late to intimate me about filing form 26QB. Because of such a late intimation of Income Tax Department I have to suffer with a big financial loss. I would like to request to IT department to waive off my late fees, and also consider that my seller has declared all these income in his return, so can i submit those details and get waiver from TDS, considering govt. has already received all dues.
Also, if i pay 1% TDS now, will my seller get that money credited after his tax adjustments?

I am fine to pay reasonable penalty (example 5000) considering i had no knowledge of subject, and there was no intention of escaping any payment.