The Finance Bill 2013 has introduced a new section 194-IA providing for TDS @ 1% to be deducted by purchaser. In case valid PAN of seller is not available , tax deduction will be at higher rate of 20%.
This is applicable w.e.f June 01, 2013 for sale of immovable property ( other than agricultural land ) where consideration is Rs. 50 Lacs and above. The purchaser is exempt from the obligation to obtain TAN, which is otherwise mandatory for all deductors.
CBDT has issued Notification No. 39/2013 on 31st May 2013 amending rules to simplify procedure for complying with provisions of this new section.
Deposit of tax:
Any tax deducted under section 194-IA will be--
# Deposited within 7 days from the end of month in which tax was deducted # Deposited by way of Challan-cums statement in Form 26QB.
TDS Certificate in respect deduction under section 194-IA will be issued by deductor in Form No 16B. Form 16B has to be issued within 15 days from the due date of depositing tax.