Tds on purchase of residential immovable property
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
11 April 2014
Please inform the responsibility of buyer and seller.
Property value isabove 1 crores as per govt registration value. Buyer has paid an earnest amount of 40 lacs by cheque on 1-4-2014 to seller and final balance payment will be given at time of registration on 25-05-2014. Is TDS to be deducted for Rs.40 lacs or buyer can pay at time of final payment at time of property registration. What is buyers ans sellers responsibility and which forms are to be submitted by buyer and seller.
Property value isabove 1 crores as per govt registration value. Buyer has paid an earnest amount of 40 lacs by cheque on 1-4-2014 to seller and final balance payment will be given at time of registration on 25-05-2014. Is TDS to be deducted for Rs.40 lacs or buyer can pay at time of final payment at time of property registration. What is buyers ans sellers responsibility and which forms are to be submitted by buyer and seller.
12 April 2014
As per provision under section 194IA, whenever payment is made in installments the buyer is required to pay the TDS on each payment. So here 1% has to be charged on 40Lacs. On final payment (assume 60Lacs), Rs. 60K of TDS can be paid at that time.
It is a buyer's responsibility to deduct the tax at the time of payment to the seller. Any delay in deduction/deposit of TDS will incur late payment and interest to the buyer.
Form 26QB has to be filed by the buyer from where he/she can make the tax payment online and then he/she has to register himself/herself in Traces to issue 16B certificate which has to be given to the seller as proof of TDS payment.
It is a buyer's responsibility to deduct the tax at the time of payment to the seller. Any delay in deduction/deposit of TDS will incur late payment and interest to the buyer.
Form 26QB has to be filed by the buyer from where he/she can make the tax payment online and then he/she has to register himself/herself in Traces to issue 16B certificate which has to be given to the seller as proof of TDS payment.
12 April 2014
Do let me know if something further needs to be clarified.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GST Regis.
- Tax on capital gains revoked us 54f
- Should I include march foreign salary received in April in my income for FY 2023-24?
- Inventory of finished goods
- Filing of Form 10BB instead of Filing Form 10B
- Confusion around Form 26QB fields
- Applicability of Ind As to associate of associate
- Clarification on Documentation of Paid-Up Capital Contribution by Directors
- Refund of AY 22-23
- Disallowance of Section 43B(h) to sez units
- GST Registration Cancellation books of accounts asked by officer
- TDS Deduction Online Learing Platform
- Point (III) 9 of GSTR-9C
- As per our records, find the below outstanding demand(s)* and interest payable u/s 220(2):
- Regarding transaction th. credit card
- MIS MATCH OF INVOICE NUMBER
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
Trending Online Classes
CAclubindia
