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.
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.
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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