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.
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:-
- PAN details of the Transferee
- PAN details of transferor
- Complete address details of Transferee
- Complete address details of transferor
- Address of property involved in transaction
- Amount payable
- Tax 1 % amount deductible /deducted
TDS certificate can be downloaded
from TRACES ((www.tdscpc.gov.in))
