Itr and tds on immovable property

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Sourav (Querist)
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19 July 2014 As a buyer I have paid TDS on immovable property which shows up in 26AS under 194IA

However, for me it is not an income (the income is for the seller) . Does this need to be shown while filling ITR1 ?
Should it be treated differently from TDS on FD ?

Thanks for any help on the topic

CA Parul Saxena

CA Parul Saxena (Expert)
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19 July 2014 In ITR the TDS amount which is to be shown is only for tds deducted on your income.TDS deducted on expenditures are not required to be quoted.and moreover the tds deducted by you must reflect in sellers'26AS and not yours.

Sourav

Sourav (Querist)
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19 July 2014 Thanks . However it does show up in my 26AS

Part F - Details of Tax Deducted at Source on Sale of Immovable Property u/s 194IA(For Buyer of Property)

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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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02 August 2024 When it comes to TDS on immovable property, the treatment in your Income Tax Return (ITR) is different from TDS on fixed deposits (FDs). Here’s how to handle it:

### **TDS on Immovable Property**

1. **Why TDS on Immovable Property Appears in Your 26AS:**
- Under Section 194IA of the Income Tax Act, TDS is deducted by the buyer of the immovable property (such as land or building) at the rate of 1% of the sale consideration. This amount is reflected in your Form 26AS as it is deducted and deposited with the government.

2. **Treatment in ITR-1:**
- **Not Income for Buyer:** For you, as the buyer, this TDS is not considered income. Instead, it is a tax deducted on behalf of the seller, which needs to be reported to ensure proper credit is given to the seller.

- **Disclosure in ITR-1:**
- You do **not** need to report this TDS as income in ITR-1.
- In ITR-1, you should **include** the details of TDS under **Part B - TI (Tax Computation)** and **Part E - TDS (Tax Deducted at Source)** to ensure that the TDS amount shown in your Form 26AS is correctly reflected. Even though this TDS is not your income, it must be correctly accounted for in your return to reconcile with Form 26AS.

- **Details to Fill:**
- **Part B-TI:** This section deals with your total income and tax computation. Since the TDS is not part of your income, it doesn’t affect the computation of total income here.
- **Part E - TDS:** Report the TDS details in the section specifically meant for TDS. You can mention it under the appropriate heading for TDS on immovable property.

3. **How TDS on FD Differs:**
- **TDS on Fixed Deposits:** This TDS is deducted from your income (interest earned on FD), and you need to report it in your ITR. It directly impacts your total income and tax liability.

### **Summary:**

- **For TDS on Immovable Property (Section 194IA):**
- Do not treat it as your income.
- Report it in **Part E - TDS** of ITR-1.
- Ensure it’s reflected correctly as per Form 26AS to avoid discrepancies.

- **For TDS on Fixed Deposits:**
- Report the interest income and TDS in **Part B - TI** and **Part E - TDS** of ITR-1.
- This affects your total income and tax liability.

In both cases, ensuring that your ITR matches the details in Form 26AS is crucial for avoiding issues with tax authorities.