RishiIn this Article we are providing information with respect to TDS on sale of Property. Section 194 IA of Income Tax act deals with the provision related to TDS on Sales of Property.
Every Buyer while making payment to seller who is resident for purchase of immovable property shall deduct TDS @1% of consideration if consideration exceeds or equal to Rs. 50,00,000. It means no TDS required to deduct if consideration is Less Than Rs. 50,00,000. For the purpose of TDS deduction, immovable property includes all types of property whether land, building, residential, commercial or industrial. How No TDS will be deducted for sale of agriculture land i.e if Agriculture land is sold for consideration of Rs. 50,00,000 or more no TDS will be deducted.
No TAN number is required for deducting & deposit TDS amount. In order to remove hardship to the taxpayers, govt has allowed deducting and depositing TDS on sale of property on the basis of PAN number.
The TDS so deducted shall be deposited to Central Government within 30 days from the end of month in which such deduction is made. All the details with respect to buyer, seller & the property shall be filled in form 26QB such as PAN of Buyer & seller (i.e transferor & transferee),Type of property, Address of property, Consideration involved, TDS amount etc.
Once the TDS amount is deposited to the central Govt. It takes 5 to 7 days for processing of challan. Once the challan is processes a request for FORM 16B (TDS certificate) could be made at TDScpc.gov.in.
The TDS so deducted will reflect in form 26AS of seller & he can claim it as refund or adjust against his tax liability while filling his Income Tax return.
Interest at the rate of 1% per month will be levied in case of late deduction & 1.5% per month if the same is not deposited to the central Govt within due date. Penalty of Rs. 200 per day will also be levied for late filling of Form 26QB. Penalty amount can not exceed the amount of TDS.
You may contact the author for further information at 9899595719 or taxwizersconsultant@gmail.com
Disclaimer: The above article is only for information purpose and is on based on the author’s interpretation of the relevant provision. The same should not be considered as professional advice.
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