vikas garg (MBA) (140 Points)
15 February 2016Is TDS to be deducted while buying property mandatory?
When the TDS is to be deducted during each payment or at the time of final payment.
I havent deducted TDS during each payment. I have made full payment. Can I pay now?
In future Any other legalaties get involve for delay payment?
Thanks in anticipation.
GargV
CA GOKUL RAJ R
(Chartered Accountant)
(151 Points)
Replied 15 February 2016
Dear GargV,
Tds is to be deducted while purchasing immovable property if the purchase value exceeds Rs. 50 lakhs.
TDS at the rate of 1% to be deducted at the time of each instalment paid. otherwise, late payment interest at the rate of 1.5% to be paid
After remitting the tds in form 26QB, the buyer has to give form 16b to the seller
Thanks
CA Gokul Raj
Sathish M
(Management Accountant)
(40581 Points)
Replied 15 February 2016
Sec 194-IA deals with TDS on sale of immovable property. Under this section TDS is to be deducted @ 1% at the time of credit of such sum to the account of the transferor or at the time of payment of such sum whichever is earlier on sale of immovable property.
The transferor or the seller contemplated in this section should be a resident of India. Therefore, this section only deals with sale of property by residents and TDS @ 1% is to be deducted on such sale by resident seller provided the consideration for sale of property exceeds Rs. 50 lacs.
Tax will be deducted at the time of making payment of installment or the whole of purchase consideration as the case may be. If any advance payment is done for the purchase of property, tax should be deducted at the time of advance payment.
For example, if you are going to make payment of a installment of Rs. 10,00,000 on 25th March’2015, tax of Rs. 10,000 shall be deducted the same day ie. 25th March’2015 and you should pay the seller Rs. 9,90,000 (net of TDS).
Time limit for payment of Tax u/s 194IA to the Govt. Account
Tax deducted(TDS) from payments made to seller shall be deposited to the goverment treasury within 7 days from the end of the month of deduction.
For example: if Rs. 10,000 tax was deducted on 25th April 2014, same shall be deposited with the government account till 7th May 2014.
How to deposit tax:
Tax shall be deposited to the government treasury by filling a challan cum statement Form 26QB online, availble at TIN-NSDL website. Payment of TDS on purchase of property is to be made online by availing any one of the following options:
Make sure to fill challan cum statement in Form 26QB correctly as till now there is no possibile way to rectify any error/mistake online. You will be required to contact the assessing officer or CPC-TDS for any subsequent rectification.
Facility for verification of status of TDS deposit is also available at online services of TIN-nsdl.
shrikant
(TAX CONSULTANT)
(50 Points)
Replied 15 February 2016
Chakradhar
(Article)
(33 Points)
Replied 16 February 2016
Rahul Verma
(CA-Final)
(484 Points)
Replied 16 February 2016
As per Section 194IA, TDS is to be deducted if payment made of Rs 50L or more as against purchase of property.
TDS is to be deducted on each payment instead of deducting at final payment.
surya shekhar
(accountant)
(108 Points)
Replied 16 February 2016
vikas garg
(MBA)
(140 Points)
Replied 19 February 2016
I have deducted the TDS @ 1% on 18/02/2016 and got challan number also. But i am not able to register on traces website. Also my 26AS form is not showing TDS.
Pls guide urgently.
Thanks
GargV
vikas garg
(MBA)
(140 Points)
Replied 28 June 2016
CAclubindia
