TDS

Entities (both corporate and non-corporate deductors) making payments (specified under Income Tax Act) to third parties (deductees) are required to deduct tax at source (Tax Deducted at Source -TDS) from these payments

TDS on Sale of Property

Overview
Points to remember
Process

TDS on Sale of Property

When you buy an immovable property (i.e. a building or a land) costing more than Rs 50 lakh you need to deduct TDS at rate of 1% on the payment made to the seller and file TDS return. The delay in filing the return attracts interest and penalty. Under this plan Taxcomate provides you with a prompt mechanism to comply with all the TDS compliance on purchase of immovable property.

Frequently Asked Questions

I have bought a property for residential purpose. Do i also need to deduct TDS? If yes then on what value?

TDS has to be deducted by every buyer on purchase of an immovable property being building/land other than agriculture land if the purchase value exceeds Rs. 50 lakhs.

TDS is to be deducted from whole amount to be paid. For eg. if a property is bought for Rs 70 lakh then TDS has to be deducted on the entire amount that is Rs 70 lakh, not on just the Rs 20 lakh that exceeds the Rs 50 lakh threshold.

I am a property buyer. What should I do if I don’t have the PAN of the seller(s)?

PAN of the seller is mandatory for deducting TDS and filing Form 26QB. It is buyer’s responsibility to acquire the PAN from the seller(s) before effecting the transaction. Neither the buyer, nor the seller is required to procure the TAN. Only PAN of both the parties is to be quoted.

I have purchased the property which was jointly owned by my friend and his spouse. How many forms do I need to fill?

The Form 26QB challan has to be filled by each buyer for every unique buyer-seller combination for their respective share. In this case, you will need to fill two form 26QB - one between you and your friend and another between you and your friend’s spouse.

I purchased a property in 2014. Do I need to deduct TDS?

From June 1st 2013, when a buyer (Indian Resident) buys immovable property (i.e. a building or part of a building or any land other than agricultural land) costing more than Rs 50 lakhs, he has to deduct TDS when he pays the seller. So, TDS is required to be deducted and you will also have to pay late fee and interest.

I purchased a property in September 2015 but forgot to deduct the TDS. What is the interest and penalty for non or late filing of Form 26QB?

TDS has to be deducted at the time of making the payment, whether in lump sum or installments. TDS has to be deducted and deposited within 7 days of the next month in which payment is made. For eg. for a payment that is made in the month of September, the return has to be filed by 7th of October.

*In case TDS is not deducted, interest is payable at 1% per month *In case TDS is deducted but not paid interest is payable at 1.5% per month *There is late fee of Rs. 200 per day till the failure to file TDS statement continues

I have 6 Challans to submit. What will be the value of the package?

We cover up to 4 Challans in our package. For every additional Challan the service charge shall be Rs. 499 plus service tax.

1. Services Covered

Registration on TRACES
Filing of Form 26QB (4 nos.)
Generation of Form 16B
Business Hours CA Support – Email and Phone

2. Who Should Buy

Any person who is an Indian Resident and has purchased immovable property
Any business entity operating in India and has purchased immovable property

3. Documents To Be Submitted

PAN of buyer(s) and seller(s)
Address and Phone number of buyer(s) and seller(s)
Property sale deed
Challan details

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TDS on Sale of Property Registration

₹2,399.00

Never let the businessman see down by giving your business a shining name with TDS on Sale of Property registration. It is extremely easy to start and run!

Benefits of filing Income TAX Returns ?

Avoid a maximum penalty of Rs 10,000, if your total income exceeds Rs 5 lakh.
Taxpayers are often served notices from the IT department for delayed & missed return submissions.
Most embassies and consulates require you to submit IT returns for the last 3 years.

You can carry forward losses against house property and depreciation.
Your Tax Return documents are proof of your financial investments and will be useful when you apply for a loan
You can claim tax refund; the earlier you file the sooner you will get the refund.