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.
- 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.