Hello, everyone want to know what is accounting and Tax treatment in case of purchase or sale of property. What is case if a buyer purchase a property from seller and vice versa. How accounting entries are taken in both the cases.
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TDS on property buy or sale
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Applicability: Required for property transactions $\ge$ ₹50 lakhs under Section 194-IA.
Deduction: The buyer deducts 1% TDS at the time of payment/credit.
Compliance: The buyer files Form 26QB and provides Form 16B to the seller.
Accounting: The buyer records the tax as a liability (TDS Payable) until payment, while the seller records it as a current asset (TDS Receivable) to be claimed against tax liability during the annual ITR filing.
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