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.
Menu
TDS on property buy or sale
Replies (1)
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.
Recent Topic
- Payment to foreign national
- Internal reconstuction
- IDS Refund – Annexure B & GSTR-3B Match,
- Can i should STCG and LTCG as business income ?
- Capital contribution in Firm
- Form 3CD – Clause 20(b) | ESI Contribution &
- Capital Gains on Dissolution of Partnership
- GST Payment through DRC-03 by cash against notice
- Schedule EI for ITR1
- INCOME TAX DEPARTMENT: DOUBLE STANDARDS
Related Topics
CAclubindia
