How to pay tds on property purchase

When you purchase a property, it is mandatory to deduct the applicable TDS as per section 194IA of the Income Tax Act. It is the responsibility of the buyer to deduct the TDS on property sale and file the TDS return to the government within the given time frame. This article covers complete insights on- what is TDS on the sale of property in India, the Online TDS filling process, and the most important FAQs. Page Contents • • • • • • • • • • • TDS On The Sale Of The Property While buying a property, a buyer has to deduct 1% TDS (tax deduction at source) from the payment he makes to the seller. It is the responsibility of the property buyer to deduct the applicable amount of TDS from the payment he is supposed to make to the seller and then file the TDS amount to the government. For example, if you buy a property from the seller at 1 crore, you have to deduct 1% of the total amount that is Rs 1Lakh, and make the payment to the property seller. Then you will be responsible to file the 1 Lakh TDS to the government. This TDS amount should be filed to the government within a specific period. You can file the TDS by generating the 26QB form online. However, there are different sets of conditions for the Indian Resident and Non-Indian residents to file the TDS returns on property. Read on to know What is TDS rate is, how to file TDS online, and what are the important conditions related to TDS that you should know while buying a property. TDS Rate on The Sale of The Property In In...

• Fields marked with * are mandatory. • Enter valid 10-digit Permanent Account Number (PAN) of the Tranferor and Transferee • Provide details as present in Form for TDS on property • TIN is not responsible for any mismatch in the details provided by Transferee/Buyer in the Form and the actual transaction of the Transferee/Buyer. Copyright © 2010 | Protean eGov Technologies Limited (Protean) Site is best viewed in IE 11+ and Chrome 64+

One of the transactions in India that is subject to tax deducted at source (TDS) is the purchase and sale of real estate. The Income Tax Code’s Section 194-IA states that TDS on the sale of property is applicable. Buyers and sellers do not have to worry about TDS ramifications at all, if the property value is less than Rs 50 lakh. For real estate transactions greater than or equal to Rs 50 lakh, TDS is imposed. Table of Contents • • • • • • • • • • • • • • • • • Applicability of TDS on Purchase of Property A buyer must deposit 1% of the transaction cost as TDS on the sale of property under Section 194-IA of the Income-Tax Act if the property’s value is Rs 50 lakh or more. In the event that there is a discrepancy between the stamp duty value and the actual sale value of the property, Section 194-IA does not indicate which amount must be considered for calculating the TDS on the property sale. It is important to note that property cannot be registered below the circle rates set by the government, which are often used to determine how much stamp duty would be charged on the sale. The property’s market value may be more or less than the amount subject to stamp duty. According to a statement released on February 1, 2022, the buyer will be required to determine TDS on the sale of the property based on the valuation that is higher in such a situation. Who Deducts TDS from a Real Estate Sale? The Indian government passed legislation requiring the buyer of a property to withhold ta...

Article explains Provisions of Section 194I related to TDS on Sale of Property with value exceeding or equal to Rs. 50 Lakhs. It explains When your are liable to deduct TDS on Sale of Property, When to deposit the TDS to Government after deduction, How to make payment of TDS to Government, Details required for filing the Form 26QB and how to Request for Form 16B [TDS Certificate for Sale of Property] Page Contents • • • • • 1. When your are liable to deduct TDS on Sale of Property? As per provisions contain in sec 194-IA of Income Tax Act, if any buyer responsible for paying to a resident seller any amount exceeding or equal to Rs. 50 Lakhs for sale of immovable property other than agricultural land, then the buyer is required to deduct TDS @ 1% of consideration for transfer of immovable property. As per Finance Act 2019, Consideration for transfer of immovable property shall include all charges of the nature of club membership fee, car parking fee, electricity or water facility fee, maintenance fee, advance fee or any other charges of similar nature, which are incidental to transfer of the immovable property . Even when the amount is paid in installments, then even you are liable to deduct TDS @ 1% on the amount paid if the total amount paid is equal to or exceeds Rs. 50 Lakhs. TDS is required to deduct irrespective of type of property whether it is land or building or vacant plot, residential or commercial or industrial property. If GST is levied on transaction value for...