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TDS on sale of immovable property

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tds rate

Replies (3)
u/s 194ia
tds on sale of immovable property is deducted @ 1%.
if consideration is more then 50 lakh.
if this is below 50 lakh then tds provision is not applicable and not required to deduct tds.
194IA applicable to any immovable property OTHER THAN agricultural land.
The buyer has to deduct TDS at 1% of the total sale consideration. Note that the buyer is required to deduct TDS, not the seller.

No TDS is deducted if sale consideration is less than Rs 50lakhs. If installments are being paid TDS has to be deducted on each installment.

Tax is to be paid on the entire sale amount. For example, if you have bought a house at Rs 55lakh, you have to pay tax on Rs 55lakh and not on Rs 5lakh (i.e. Rs 55lakh – Rs 50lakh). This is applicable even when there is more than 1 buyer or seller.

If you are the buyer, you do not need to obtain a TAN (Tax Deduction Account Number) number.

If you are the seller, you have to provide your PAN or else TDS is deducted at 20%. PAN of the buyer is also mandatory. TDS is deducted at the time of payment or at the time of giving credit to the seller, whichever is earlier.

This TDS has to be deposited along with Form 26QB within 30 days from the end of the month in which TDS was deducted.

After depositing TDS to the government, the buyer is required to furnish the TDS certificate to the seller. This is available around 10-15 days after depositing the TDS.

The buyer is required to obtain Form 16B and issues this TDS certificate – Form-16B to seller.


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