TDS on purchase of property more than 50 lakhs

@ Manjiri Juvekar

This query was already answered by me few weeks ago. Again summarizing below.

For Property transaction over 50 Lakh [whether sale amount or market value, whichever is higher] , 1% TDS for Resident Seller and 20% TDS + 4%Cess on 20% TDS will have to be debited by the buyer.

This is irrespective of whether it is a SINGLE BUYER or Joint Buyers.

Buyer [or Buyers] will need to deposit the TDS to Income Tax Authrities after getting TAN, within a period of maximum 3 M from Date of Registration of Property using challan QB. Joint buyers would require individual TANs and deposit the TDS with separate QB.

And Buyer [ or Buyers] would have to obtain the Form16A from TRACES and provide the same to the Seller at the earliest as soon as it becomes available. For Joint Buyers, there would be more than one Form 16A.

Form 16A would be needed while doing the IT Return Filing.

In case the full payment is made by a single buyer, but property is registered in Joint names, the TDS will need to be deducted by the buyer making the payment with TAN, TDS deposit under QB, Form16A, all would be under name of the individual making the payment.

Hope it is clear.