Tds

This query is : Resolved

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07 August 2013 I AM A RESIDENT INDIAN. I AM BUYING A PROPERTY, OWNER OF THE PROPERTY IS A NRI. THE OWNER HAS GIVEN SPECIAL POWER OF ATTORNEY TO HIS RELATIVE TO SELL THE HOUSE.AM I REQUIRED TO DEDUCT TDS ON THE PAYMENT

Hemant Kumar

Hemant Kumar (Expert)
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07 August 2013 Yes TDS should be deducted. Get PAN number of owners relative who have power of attorney.

Querist : Anonymous

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07 August 2013 TDS TO BE DEDUCTED ON POA OR THE OWNER

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Hemant Kumar

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07 August 2013 TDS deducted on POA.

Querist : Anonymous

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07 August 2013 AT WHAT RATE TDS TO BEDEDUCTED

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07 August 2013 SALE VALUE IS 40L

Hemant Kumar

Hemant Kumar (Expert)
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07 August 2013 As per Finance Bill of 2013, TDS is applicable on sale of immoveable property wherein the sale consideration of the property exceeds or is equal to Rs 50,00,000 (Rupees Fifty Lakhs). Sec 194 IA of the Income Tax Act, 1961 states that for all transactions with effect from June 1, 2013, Tax @ 1% should be deducted by the purchaser of the property at the time of making payment of sale consideration. Tax so deducted should be deposited to the Government Account through any of the authorised bank branches.

Points to be remembered by the Purchaser of the Property:

Deduct tax @ 1% from the sale consideration.
Collect the Permanent Account Number (PAN) of the Seller and verify the same with the Original PAN card.
PAN of seller as well as Purchaser should be mandatorily furnished in the online Form for furnishing information regarding the sale transaction.
Do not commit any error in quoting the PAN or other details in the online Form as there is no online mechanism for rectification of errors. For the purpose of rectification you are required to contact Income Tax Department.

Querist : Anonymous

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07 August 2013 ISNT 1% TAX DEDUCTN APPLICABLE FOR SALE ABOVE 50L

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07 August 2013 IS 1% DEDUCTION APPLICABLE FOR SALE LESS THAN 50LAC

Hemant Kumar

Hemant Kumar (Expert)
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07 August 2013 No need to deduct TDS if Sale consideration of property is less than 50 lakh.