TDS ON PURCHASE OF IMMOVABLE PROPERTY

SECTION 194-IA

TDS ON PURCHASE OF IMMOVABLE PROPERTY

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Points to Remember

1. Stamp Duty Value is of no importance for applicability of Section 194-IA. The provisions of Section 194-IA are applicable only if the consideration paid or payable is equal to or more than Rs.50 Lacs.

2. TDS provisions are applicable even if the agreement or transfer took place before 01.06.2013 and the payment is made on or after 01.06.2013. If some part payment is made before 01.06.2013 then the payments made on or after 01.06.2013 will be subject to TDS.

3.  Immovable Property means any land or building or part of the building. Such property made be situated in India or outside India.

4.  The Threshold limit of Rs.50 Lacs is applicable to each and every property separately.

5. In case of more than one buyer and the share of each buyer is less than Rs.50 Lacs and the  aggregate value of property is not less than Rs.50 Lacs then TDS provisions will be applicable and each buyer will deposit the TDS according to his share in the property.

6. In case of more than one seller, if the respective shares of each seller is less than Rs.50 Lacs and the aggregate value of property is not less than Rs.50 Lacs then TDS provisions will be applicable and TDS of each seller will be deposited according to his share in the property.

HOW TO PAY TDS ON IMMOVABLE PROPERTY

Steps for Payment of Tax

1.  Login to www.tin-nsdl.com website

or

            Click on the following link

            https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp

2. Then Select Form 26QB  - Payment of TDS on Sale of Property.

3. Then Select the Financial Year

4. Provide the following details :

·     PAN of Buyer and Seller

· Complete Address of Transferee (Buyer) and Transferor (Seller)

·  Complete address of Property Transferred, Date of Agreement or Booking

·      Total Value of Consideration (Property Value)

·      Amount Paid / Credited

·      TDS rate and TDS amount

5. Then Select the Mode of Payment of Tax

·      Through Net Banking or

·      Manual payment in bank through Challan

6. Then provide the

·      Date of Payment / Date of Credit   and

·      Date of Tax Deduction

7. Type the Captcha Code (Characters) in the box  given and click on the Proceed button

8. A Confirmation page is displayed to verify the details entered.

9. If all the above detail including the name displayed (as per ITD) is correct then, click on “SUBMIT” button.

10. In case you have made a mistake in data entry, click on “EDIT” to correct the same.

11. On confirmation, nine digit alpha numeric Acknowledgment number would be generated

12. To do the required TDS payment, please click on ‘Submit to the Bank’ button

13. On clicking on Submit to the Bank, deductor will have to login to the net-banking site with the   user ID/ password provided by the bank for net-banking purpose.

14. On successful login, enter payment details at the bank site.

15. On successful payment a challan counterfoil will be displayed containing CIN, payment details and bank name through which e-payment has been made.

16. This counterfoil is proof of payment of Tax.