Section 194IA is all about the TDS deduction at the time of buying a property. All the details that revolve around that zone have been zipped here.
Section 194-IA was introduced on June 1, 2013. According to Section 194-IA, if a buyer buys an immovable property like a house, building, a section in a building, or land (other than agricultural land), of more than Rs.50 lakhs, he/she also has to pay TDS (Deduct Tax at Source).
As per the announcement made by the Finance Minister of India, Nirmala Sitaraman in the Budget 2022, homebuyers have to pay 1% TDS (Deduct Tax at Source) on either the actual price of the property or on the stamp duty values; whichever is higher, will be considered. This rule will be implemented with effect from April 1, 2022.
Given below are some points that can help the buyer as well as the seller with matters related to TDS.
Rules of Section 194-IA are applicable on the purchase of residential properties, commercial properties, and lands. Rules of Section 194-IA do not apply to the purchase of agricultural land.
To efficiently follow the payment procedure of the TDS (Deduct Tax at Source), you need the following details to be filled in Form 26QB:
TDS (Deduct Tax at Source) can be online as well as using the offline method.
Visit your branch bank and ask for a Tax Payment Challan Form. Provide all details in the Challan Form and submit it to the Bank. Bank will update those details on the Income Tax website, and once TDS has been deposited, the buyer can download the TDS certificate from the Income Tax website. It is the duty of the buyer to provide a TDS certificate to the seller within 15 days.
Visit https://www.incometaxindia.gov.in/Pages/tds-sale-of-immovable-property.aspx and follow all the steps to deposit TDS (Deduct Tax at Source) online.
After deducting TDS (Deduct Tax at Source), the buyer needs to deposit it by the 7th of the following month. In other words, the TDS deducted in the month of January must be paid to the government by February 7.
Given below are some points that can help the buyer with matters related to TDS.
Below are some points that can help sellers with matters related to TDS.
PAN of the seller is necessary. There's no way you can deduct TDS without the seller's TDS.
No. TAN (Tax Deduction Account Number) is not required to deduct TDS. Buyers and Sellers PAN is all that is necessary to deduct TDS on the sale of the property.
The buyer of the property is responsible to deduct TDS on the sale of the property.
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