Tds on purchase of immovable property

Transaction after 1st June will attract TDS.

Transferee Need Not Obtain TAN Number.

.

Transferee Just need to Fill in only one page challan for payment of taxes.

With effect from June 1, 2013, any person who acquires an immovable property (other than agricultural land) from a resident transferor and where the value of consideration exceeds Rs 50 Lakhs, shall be required to deduct tax at source at the rate of 1 percent.

So You need not deduct any TAX.

TDS is always deductile if you are paying any sum to NRI @ the prevailing rate.

https://www.indiantaxupdates.com/2012/10/30/purchase-of-immovable-property-from-non/

TDS at the prevailing rate was to be deducted from Non-Resident on the entire sales consideration of flat on payment or credit, whichever is earlier, as per provisions of Sec-195 of the Income Tax Act. Please go through Sec-195 carefully.

Originally posted by : CA.SKR
	TDS at the prevailing rate was to be deducted from Non-Resident on the entire sales consideration of flat on payment or credit, whichever is earlier, as per provisions of Sec-195 of the Income Tax Act. Please go through Sec-195 carefully.

Thanks! What is the prevailing rate? Is it 10% or 20% for NRIs in relation to Immovable Property.

 (section 194IA) are going to be effective from 1st June 2013..

Further see the above provision
 

Conditions:

a) This provision will be applicable in respect of transactions effected on or after 01.06.2013.

b) It seeks deduction of tax at source on transfer of certain immovable property other than agricultural land referred to in section 2(14).

c) Any person being a transferee who is liable to pay to a resident by way of consideration for transfer of any immovable property shall at the time of credit of such sum to the account of the transferor or at the time of payment in whatever manner, has to deduct tax at source at 1 percent.

d) The liability to deduct tax at source is at the time of actual payment or credit of such sum to the account of the transferor whichever is earlier.

e) The threshold limit for application of tax deduction at source is Rs.50 lakhs. Where the transaction is less than Rs. 50 lakhs, the liability to deduct tax at source will not be applicable.

f) Since the expression used in the section is “any sum by way of consideration” the provisions of section 50C will not interfere. Hence, tax deduction at source will be with reference to apparent consideration only.

Analysis:

a) Consideration may be given before 1^st June

b) Since TDS is always deducted at the time of credit or payment whichever is earlier, so if consideration is credited before 1^st june, say 25^th May and consideration is paid on or after 1^st June, the liability to deduct tax does not arises.