Tds on purchase of property

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 July 2015 Hello,

Someone I know is planning to buy an open plot in Bangalore falling under the BDA area. I am told that TDS @ 1% is applicable. Is this correct?

Who pays for it? The buyer or the seller? What is the general market practice?

I would be grateful if any expert can please help me with this query.

thanks in advance

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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15 July 2015 TDS @ 1% is applicable on sale of property valuing more than 50 lacs.
The buyer has to deduct from the sale value and pay. This 1% can be adjusted against further tax payments or refund can be obtained by filing return.
It is the Rules and as per market practice.

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Vivekanand Kushwaha

Vivekanand Kushwaha (Expert)
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15 July 2015 As per Section 194IA,purchaser of an immovable property (other than agricultural land) worth over Rs 50 lakh is required to pay withholding tax at the rate of 1% from the consideration payable to a resident transferor. The rate at which tax is to be cut is 1%, but it would go up to as high as 20% if the seller does not disclose his permanent account number. This amendment is effective from 1st June, 2013.

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