TDS on Property Buy/SELL
The Income Tax Act– Section 194IA
Any person (i.e. Individual, HUF, Partnership firm including LLP, AOP, BOI, Company, Local authority, Artificial Juridical person) being a transferee of immovable property, other than the agricultural land, responsible for making payment to a resident transferor as consideration for transfer of any immovable property, shall deduct TDS @1% of such payment. Note: Where the stamp duty value of the property is higher than the consideration for the transfer, 1% shall be calculated on the stamp duty value of the property.
When to deduct TDS
TDS @1% shall be deducted at the time of credit of consideration for transfer to the account of the transferor or at the time of payment in cash, by the issue of a cheque, or draft or by any other mode, whichever is earlier. Note: (i) U/S 269SS, no person shall be permitted to accept Rs. 20,000/- or more in cash in relation to the transfer of an immovable property (even if the transfer does not take place). (ii) TAN is not required to deduct and payment of TDS under this section.
Definition of Consideration for transfer of immovable property
Consideration shall include all charges of the nature of club membership fee, car parking fee, electricity and water facility fee, maintenance fee, advance fee, or any other charges of similar nature, which are incidental to transfer of the immovable property. Responsibility of the transferee after deducting TDS against payment to the transferor The amount of TDS which has been deducted shall be deposited to the credit of the Central Government within a period of 30 days from the end of the month in which the deduction was made.
How to deposit TDS amount to the Credit of the Central Government?
For Error free deposit of TDS one can contact Shalini Arora and Company via Phone 9873709194
CA SANJAY ARORA
