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
- Input tax credit under igst under insurance compan
- ITR Form to be used
- CGAS account Holder Deceased
- ITR form suggestion
- Post office KVP income.
- Free GST invoice tool I built for my practice R
- Clarification on Gratuity Exemption under Section
- GOODS AND SERVICE TAX - GSTR 1
- Correct ITR form
- Clarification required on Section 393 & Report
Related Topics
CAclubindia
