TDS on purchase of Property of 50 Lakhs

Income Tax Department has decided that any person purchasing immovable property (other than agricultural land) where consideration amount exceeds Rs 50 lakh or more is required to deduct TDS @ 1% u/s 194 IA w.e.f. 01-06-2013.

e-payment is mandatory for TDS on Immovable Property and PAN of seller as well as the purchaser is to be furnished while providing information regarding the sale transaction in the online form (Form No.26QB).  In this regard the Income Tax 
Department has issued a notification to issue TDS Certificate i.e. Form-16B for TDS Deduction u/s. 194-IA. 

The purchaser is required to deduct tax and would not be required to obtain a Tax Deduction Account Number. The seller has to verify deposit of taxes deducted by the purchaser in Form No 26AS Annual Tax Statement. The Central Board of Direct Taxes (CBDT) has come out with an online form for making TDS payment on property transactions. This form requires mandatory quoting of PAN which is verified with the IT Department's website.

For the above transactions following details are compulsory:-
  1. PAN details of the Transferee
  2. PAN details of transferor
  3. Complete address details of Transferee
  4. Complete address details of transferor
  5. Address of property involved in transaction
  6. Amount payable
  7. Tax 1 % amount deductible /deducted

TDS certificate can be downloaded from TRACES ((