Not deducting TDS
1% per month from the date on which you were supposed to deduct TDS until the day on which you actually deduct TDS.
Not depositing the TDS
1.5% per month from the date on which TDS is deducted to the date of payment to government.
Property TDS Solution with all your needs Benefits you get at Property TDS Wala
Any Investment Types that you like.
Stocks from Experienced Industries over75% Benefit Ratio
Get the App Now
Hassle FreeInvestment Options
Time Saving
Error Free Filling
Compliance
Timely Reminders
Professional Experience
Efficiency
Financial Planning
Cost Effective
Section 194IA - How to File TDS on Sale of PropertyExperts at your doorstep to guide.
Requirements of Section 194-IA
When purchasing immovable property (e.g., buildings or land, excluding agricultural land) costing over Rs 50 lakhs, the buyer must deduct Tax Deducted at Source (TDS) as per Section 194-IA of the Income Tax Act, effective since 1st June 2013.
Key Points:
- TDS Deduction Rate: The buyer must deduct TDS at 1% of the total sale amount.
- Threshold: TDS applies only if the property’s purchase value is Rs 50 lakh or more.
- Instalment Payments: TDS must be deducted on each instalment paid to the seller.
Buying a House?
When buying or selling property in India, taxes are a crucial consideration. One key tax is the Tax Deducted at Source (TDS) on property sales under Section 194-IA, which applies to immovable property like land and buildings. The buyer must deduct TDS before making a payment to the seller. Let’s explore the TDS rate on property sales under Section 194-IA, who is responsible for the deduction, and how to file TDS on property sales.
4. Inclusive Charges: From 1st September 2019, the total sale consideration includes club membership fees, car parking fees, utility fees, maintenance fees, and similar charges.
5. Example Calculation: For a property bought at Rs 55 lakh, TDS is on the full amount (Rs 55 lakh), not just the excess over Rs 50 lakh. Additional fees (e.g., parking, water, electricity) are also included in the sale consideration. If these fees total Rs 4 lakh, making the sale consideration Rs 59 lakh, TDS is calculated on Rs 59 lakh (Rs 59,000).
6. PAN Requirement: The buyer does not need a TAN (Tax Deduction Account Number) to deposit TDS but must use their PAN. They must also obtain the seller’s PAN to avoid a 20% TDS deduction rate.
7. Payment Timing: TDS is deducted at the time of payment to the seller, including instalments.
8. Form 26QB: TDS must be paid using Form 26QB within 30 days from the end of the month in which TDS was deducted.
9. TDS Certificate: After depositing TDS, the buyer must furnish the TDS certificate (Form 16B) to the seller, available 10-15 days after deposit. The procedure to generate and download Form 16B is available on TRACES.
This ensures compliance and accurate tax reporting in property transactions.
A Brief guide to File your Property TDSA Walk through to Self Property TDS Filing
EMI CalculatorAny Investment Types that you like.
Calculate the EMI that you will be required to pay for your home loan with our easy to understand home loan EMI Calculator.
Progressive Percentage
The choice is in your hands: Where do you go to get an advice and where you purchase products !!
Easy Documentation
The financial statement is a standard financial document include the balance sheet, income statement, and cash flow statement.
Competitive Percentage
Competitive percentage helps to select strategics to take advantage of your service-based market based on competition.
No Pre-Closure Cost
We will create a unique and visually pleasing logo to reflect your overall brand to be used in all areas of your marketing.
Our Valuable ClientsOur long terms partners in our Property TDs Filling Journey
Any Investment Types that you like.Why Mutual Funds?
Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry’s standard dummy text ever since the 1500s, when an unknown.when an unknown printer took a galley of type and scrambled.
Any Investment Types that you like.Why Direct Equity?
Any Investment Types that you like.Why Fixed Deposits?
Filing your TDSContact for Free Consulting
Preferred TDS filing mode for 5,000+ tax experts
Using the outcomes from the job, we will put together a plan for the most effective marketing strategy to get the best results.
Our NewsletterTo People like you
Note: We don’t spam you
The Finance Bill 2013 has proposed that the purchaser of an immovable property (other than rural agricultural land) worth ` 50 lahks or more is required to deduct TDS at the rate of 1% from the consideration payable to a resident transferor.
The buyer of the property is liable to deduct TDS and deposit the same to the government.
Buyer or Purchaser of the property is not required to procure Tax Deduction Account Number (TAN). All that is required is the buyer’s and sellers PAN to report the TDS.
The seller’s PAN is mandatory to obtain. If the PAN is not available, TDS is to be made @ 20% of the purchase value, and then the seller will not get the credit of the TDS amount.
Each buyer must fill out the Form 26QB challan for each unique buyer-seller combination for their respective share.
For example, if there is one buyer and two sellers, two forms must be filled in. Similarly, if there are two buyers and two sellers, then four forms must be filled in.