SECTION 194IA : TDS ON SALE OF IMMOVABLE PROPERTY

SECTION-194IA TDS ON SALE OF IMMOVABLE PROPERTY

SECTION-194IA TDS ON SALE OF IMMOVABLE PROPERTY
  • This Section is applicable from 1st June 2013
  • This section is applicable when any immovable property (except agriculture land) purchased by a Resident person if the value of the property exceeds Rs.50.00 Lacs than buyer deduct the TDS when he pay the consideration to seller.

GENERAL PROVISION:

  • The Buyer will be deduct the TDS @ 1%  if seller provides his PAN otherwise TDS rate will be 20% if seller not provide the PAN.
  • TDS is applicable on whole sale consideration.
  • It is applicable when the property value exceeds Rs.50.00 Lacs.
  • It is immaterial that buyer or seller is more than one.
  • There is no requirement to take the TAN for buyer.
  •  TDS should be deposited along with Form 26QB within 30 days from the end of the month in which the TDS deducted.
  • Buyer will be issue the TDS Certificate in Form16B after depositing the tds to the government.

SECTION-195 : TDS ON SALE OF IMMOVABLE PROPERTY WHEN SELLER ISNON RESIDENT

  • This section is applicable when any immovable property sold by a non resident.
  • In this case TDS is deducted on the Capital Gain not on the sale consideration.
  • The Buyer will be deduct the TDS @ 20%  ( the rate of LTCG) on capital gain.
  • The limit of sale consideration of Rs.50.00 will not be applicable in this case.
  • The buyer is required the TAN.

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