Section 194IA is inserted by Finance act 2013 and is applicable from 01st of June, 2013. A person who is purchasing any immovable property (other than agricultural land) from a resident is required to deduct TDS @ 1% from the amount payable in this behalf.
TDS is not required to be deducted If the property value is less than Rs. 50 lakhs. Also, TDS is required to be deducted on all type of immovable property such residential property, commercial property or industry except agricultural land.
TDS is required to be deducted @ 1% on the amount payable to the seller of property. If the PAN number of the seller is not available, then the TDS is required to be deducted @ 20%.
No tax is required to be deducted where the total amount of consideration (selling price of property) is less than Rs. 50 lakhs. When amount of consideration is Rs 50 lakhs or more then the TDS is to be deducted on the whole amount not only on the amount exceeding Rs. 50 lakhs.
Tax is required to be deducted at the time of credit of such sum to the account of the payee or at the time of payment whichever is earlier. The date of registration, agreement or contract is irrelevant for deciding the time of payment of TDS.
The deductor i.e. the purchaser of property has to file form 26QB which is a Challan cum declaration statement within 30 days from the end of the month in which payment is made. No separate TDS return is to be filed in respect of such deduction. Form 26QB has to be file online on https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp. Manual submission of form is not allowed.
Form 26QB is a challan cum declaration statement. Therefore, it?s not possible to pay TDS without filing this form and not possible to file the form without payment of TDS.
Yes, corrections under 26QB are possible.
Each buyer must complete challan cum e-statement Form/Form 26QB for every unique buyer-seller combination for the fair share. For example, if there is one buyer and two sellers, two forms must be completed, and if there are two buyers and two sellers, four forms must be completed for corresponding property shares.
The buyer has to deduct TDS on payment of consideration to the seller.
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