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TDS on immovable property

Divya Priya (student) (333 Points)

12 November 2020

NRI buying house property in india for 9700000. Paid adv 20lakh on Feb 2020 and 20000 tds deducted.For balance 77 lakh is to be paid to seller on November 26 , 2020. what is the tds rate applicable ? 1% or 0.75%.

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7 Replies

sabyasachi mukherjee (27574 Points)
Replied 12 November 2020

Now this is a seperate tax collected by the govt. authorities.

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Divya Priya (student) (333 Points)
Replied 12 November 2020

What is tds rate ?

sabyasachi mukherjee (27574 Points)
Replied 12 November 2020

Sec 194 IA IF THE VALUE OF THE PROPERTY IS MORE THAN 50 LACS.

1%

ayusmita (Tax consultant) (5885 Points)
Replied 13 November 2020

1% tds rate applicable
and can get deduction too as per80c

Shivam RC (Student) (23683 Points)
Replied 13 November 2020

Under Section 194-IA of the Income Tax Act 1961, TDS @ 1% is deducted from Payment for acquisition of Immovable Property. However due to the ongoing pandemic situation, the Rates of TDS has been reduced by 25% for the period 14th May 2020 to 31st March 2021 for certain non-salaried payments, inorder to increase liquidity in the hands of the peoples during these testing times.

As per Press Release dated 13th May 2020 issued by the Central Board of Direct Taxes ( CBIC ), the benefit of 25% reduction in TDS Rates will also be applicable on Payment for acquisition of immovable property U/s 194-IA of the Income Tax Act 1961. Hence the Net TDS to be deducted from the balance payment of Rs. 77 lakhs would be 0.75%, as it falls within the specified period.

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