How to file TDS on the Sale of Property
How to file TDS on the Sale of Property
According the provision of Income Tax Act 1961 the buyer has to many taxes like GST, but when a buyer purchase a Immovable liable to deduct TDS under section 194IA. Buyer need to deduction TDS and balance amount paid to seller.
Section 194IA
From 1 June 2013 when a buyer purchase immovable property land or building other than agriculture land more than Rs.50,00,000 he has to deduct tax at source and balance amount need to pay the seller. There is a provision of section 194-IA of the Income Tax Act 1961.
1.No TDS is required to be deducted if sale consideration is less than Rs 50 Lakhs
2. The buyer has to deduct TDS at 1% of the total sale consideration.
3. Consideration for immovable property shall include all charges like nature of club membership fee, electricity or water facility, maintenance fee, advance fee or any other charges of similar nature which are incidental to the transfer of the immovable property.
4. TDS is to be paid on the entire sale amount of immovable property ( including all other facility of property)
5. There is no need to take TAN ( Tax Deduction Account Number) for making of the TDS payment on such immovable property.
6.TDS on immovable property paid through PAN based. If a seller does not have PAN than TDS rate would be 20% instead of 1%
7. TDS is to be deducted at the time of payment or at the time of giving credit to the seller whichever is earlier.
8. The TDS on the immovable property has to be paid through form 26QB within 30 days from the end of the month in which TDS was deducted.
9. After deposited TDs to the Central Government the buyer is required to furnish the TDs certificate in form 16 B to the seller.