- 1. TDS on
ImmovableProperty
- 2. What
is TDS on property?§Applicable
on purchase of an immovable property(other than rural agricultural land)
w.e.f. 1st June,2013§Value
worth Rs.50 lakh or more§TDS @ 1%
to be deducted from the salesconsideration§Applicable only when seller is a
resident (notapplicable in case where the transferor is a non-resident)
- 3. Who
is responsible to deduct theTDS?§Buyer of the property would have
to deduct theTDS and deposit the same within seven days fromthe end of the
month in which TDS is deducted§TDS to be
deposited shall be accompanied by achallan cum statement in Form No 26QB§Buyer
shall furnish the TDS Certificate in Form No16B within 15 days from the
date of furnishingchallan cum statement
- 4. Details
required to pay TDS§
Transferee/Buyer’s PAN, Complete Name and Address§ Transferor/Seller’s PAN, Complete
Name and Address§ Date of
Agreement§ Complete
Address of the property transferred§ Total Value of the sales
consideration§ Details
of Amount paid§ Date of
payment to seller§ Amount of
TDS to be paid
- 5. Procedure
for payment of TDS§Log on to
NSDL – TIN website (www.tin-nsdl.com)§Click on the option “Online form
for furnishing TDSon propertyӤSelect
challan “TDS on sale of Property”§After selecting the challan you
will be directed to ascreen for entering the details as discussed in
theprevious slide
- 6. Procedure
for payment of TDS§ After
entering all the details, click on the PROCEEDbutton. The system will
check the validity of the PAN.§ If PAN is
available with then TIN will display thecontents you have entered
alongwith the “Name”appearing in the ITD Database§ Verify the details entered by
you. In case there ismistake in data entry, click on “EDIT” button to
correctthe same.§ If all
the details are correct, click on “SUBMIT” button.
- 7. Procedure
for payment of TDS§The Buyer
can make the payment of taxes onlinethrough net-banking account. On
successfulpayment a challan counterfoil will be displayedcontaining CIN,
payment details and Bank Nameor§By
visiting any of the authorised bank branches.The Bank will make the
payment and provideChallan counterfoil as acknowledgement forpayment of
taxes
- 8. FAQQ
- Mr A has bought a house in Ahmedabad. But he doesnot have TAN to report
TDS on sale of property?A - Mr A is not required to procure TAN. Mr. A is
required toquote his PAN as well as the seller’s PAN.
- 9. FAQQ-
Mr X has bought a house in Surat from Mr. Y. But hedoes not have PAN of Mr
Y. What can he do?A- PAN of the seller is Manadatory. But if Mr. Y does
nothave PAN, TDS will be deducted at a higher rate of20% instead of 1%.
- 10.
FAQQ- Mr C has bought a office in Baroda from Mr. D. Mr Chas
made all the payments to Mr. D before 1st June,2013, though the agreement
was executed on 7thJune, 2013. Does he need to deduct TDS?A- No, Mr C does
not need to deduct TDS.
- 11.
FAQQ- Mr Z has bought a plot of land from M/s XYZ Pvt Ltd,
abuilder. Does he need to deduct TDS?A- Yes, Mr Z will be required to
deduct TDS.
- 12.
FAQQ- While depositing TDS Mr Z, the buyer has quotedwrong PAN
in the Challan. What can he do?A- It is very important to ensure that the
Pan of the Buyer& Seller are correctly mentioned in the challan.
Thereis no online mechanism for subsequent rectification.He will have to
approach Assessing Officer forrectification of error.
- 13.
FAQQ- Mr. R purchased a house from Mr. S. He depositedTDS of
Rs.100000/- for this transaction. At the end ofthe year, the tax liability
of Mr. S comes to Rs.60000/-.How will Mr. S claim refund of the balance
Rs.40000/-?A- The procedure for refund is as usual. Mr. S will claimthe
balance amount of refund in his Income Tax Returnfiled at the end of the
year.
- 14.
FAQQ- Total tax liability of Mr. A from his business
isRs.200000/-. On his property deal, he has TDS creditof Rs.50000/-. Can
he claim the set off?A- Yes. The TDS credit on property can be set off
againsttax liability payable on any other source of income.Hence his net
tax liability comes to Rs.150000/-.
- 15.
It’s a myth thatTDS IS AN EXPENSEActually it’s aPRE PAID TAXES
WHICH CAN BE SET OFF AGAINSTTOTAL TAX LIABILITY
- 16.
Points to Remember by Buyer§ Deduct tax @ 1% from the sale
consideration§ Collect
the PAN of the Seller and verify the same with theOriginal PAN card§ PAN of
the seller and the buyer should be mandatorilyfurnished in the online
challan§ Do not
commit error in quoting the PAN or other details in theonline challan
- 17.
Points to Remember by Seller§ Provide your PAN to Buyer for
payment of TDS§ Collect Form
16B showing the TDS paid from the buyer§ Verify deposit of taxes deducted
by the Buyer in your Form26AS Annual Tax Statement
- 18.
If I encounter any error on NSDLsite while entering the online
formdetails what should Ido?§ If any
problem is encountered at the NSDL website whileentering details in the
online form then contact the TIN CallCenter at 020 - 27218080020 -
27218080 or write to us at tininfo@nsdl.co.in(Please indicate the subject
of the mail as Online Payment ofDirect Tax).
Monday, 29 December 2014
TDS on ImmovableProperty
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