ANIL KUMAR KHETAN (PROPRIETOR) (487 Points)
04 April 2018
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(160682 Points)
Replied 04 April 2018
Yes, if property purchased is for Rs. 50L or more
Rahul Prajapati
(Student)
(2282 Points)
Replied 04 April 2018
Section 194IA
when a buyer buys immovable property costing more than Rs 50lakhs, he has to deduct TDS when he pays the seller.
In case of where the TDS is not paid to the Govt. account by the due date then under section 201 of IT Act 1961 interest will be levied and the deduct or (buyer of the property) is to be deemed as an assessee in default for failure to pay or for late payment of any TDS including TDS on immovable property.
There could be two scenarios;
a) If tax deducted is not deposited by the 7th of next month of the month of deduction, but is paid at a later date
b) If tax is not deducted at all
In first scenario where tax is not deposited by due date, interest at 1.5% for every month or part of a month on the amount of such tax from the date on which such tax was deducted to the date on which such tax is actually paid.
In the second scenario, if tax is not deducted at all then interest at one per cent for every month or part of a month on the amount of such tax from the date on which such tax was deductible to the date on which such tax is deducted.
Let’s understand this with an example: If Rs. 55,000 tax was deducted on June 25, 2015, which required to be deposited with the government account till July 7, 2015, but if the same is paid on August 7, 2015 then interest calculations will be as follows:
Here number of months of default is 3, because part of June will be counted 1, full July month another 1 & part of August another 1 making a total of 3 months of default.
Interest Rate: 1.5%×3=4.5% then Amount of Interest: Rs. 55,000×(3×1.5%)= Rs. 2,475
Late Fee Applicable u/s 234E
In addition to above interests, a late fee of Rs. 200 per day u/s 234E will be levied subject to the amount of tax is to be levied for late filing of TDS statement i.e. form 26QB. Since form 26QB is treated as a statement (which generates TDS certficate as form 16B) prescribed u/s 200(3), therefore late filing of the same will attract late fee u/s 234E of Rs. 200/-per day.
Now how the late fee amount is arrired? Let refer above example, if Rs. 55,000 tax was deducted on June 25, 2015, which requires to be deposited on or before July 7, 2015. . But if the same is paid say by August 7, 2015 then, late fee will be calculated as follows:
No. of days from July 8, 2015 to August 7, 2015 = 32 days
Late fee= 32× Rs. 200= Rs. 6,400 or Rs. 55,000 (amount of tax) whichever is lower i.e. Rs. 6,400
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