Section 194IA, is effective from 01.06.2013. Accordingly on sale of immovable property Buyer has to deduct TDS @1% and deposit the same with the income tax department.
Key Highlights of TDS on Immovable property are mentioned below:
- TDS is to be deducted by buyer @ 1% of value.
- TDS is to be deducted only if property value exceeds Rs 50 lacs.
- No TAN is required by buyer
- Only PAN no of Buyer and Seller is to be mentioned filing depositing TDS.
- TDS can be deposited online ,
- TDS deducted by the buyer at the time of making the payment to the seller has to be deposited within a period of 7 days from the end of the month in which the deduction has been made.
- Form 26QB has been prescribed for making such payment and the form for doing the same has been uploaded on the following website of NSDL: https://onlineservices.tin.nsdl.com/etaxnew/tdsnontds.jsp
- Issue of TDS Certificate: The TDS Certificate shall be issued in Form 16B within 15 days from the due date of deposit.
- In case the PAN Card No. is not given by the buyer to the seller, TDS would be required to be deducted @ 20% under 206AA
Already as per current Income tax provision on purchase and sale of immovable property PAN no is compulsory if value exceeds Rs 5 lac. The reason for introducing section 194-IA is for widening of tax base and to check tax avoidance measures.
Major Challenges expected due this new Section on TDS on Immovable property
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