Tuesday, June 4, 2013

1% TDS u/s 194 IA on Purchase/Sale of Immoveable Property

       As per Finance Bill of 2013, TDS is applicable on sale of immoveable property wherein the sale  consideration of the property exceeds or is equal to Rs 50,00,000 (Rupees Fifty Lakhs). Sec 194 IA of the Income Tax Act, 1961 states that for all transactions with effect from June 1, 2013, Tax @ 1% should be deducted by the purchaser of the property at the time of making payment of sale consideration. Tax so deducted should be deposited to the Government Account through any of the authorised bank branches. Facility for furnishing information regarding the transaction of sale of immoveable property and payment of TDS thereof is available on this website.

Detailed procedure, user friendly e-tutorial, list of Bank branches authorised to accept TDS and Frequently Asked Questions (FAQs) are available on this website for reference.

Points to be remembered by the Purchaser of the Property:
  1. Deduct tax @ 1% from the sale consideration.
  2. Collect the Permanent Account Number (PAN) of the Seller and verify the same with the Original PAN card.
  3. PAN of seller as well as Purchaser should be mandatorily furnished in the online Form for furnishing information regarding the sale transaction.
  4. Do not commit any error in quoting the PAN or other details in the online Form as there is no online mechanism for rectification of errors. For the purpose of rectification you are required to contact Income Tax Department.

Points to be remembered by the Seller of the Property:
  1. Provide your PAN to the Purchaser for furnishing information regarding TDS to the Income Tax Department.
  2. Verify deposit of taxes deducted by the Purchaser in your Form 26AS Annual Tax Statement.
                                             Picture view of online challan provided by NSDL for depositing 1% TDS on consideration of immovable property is given below  :-

The following fields are required to deposit the TDS challan u/s 194 IA deducted  from seller :-
  1. Tax Applicable (0020) Income Tax on companies (Corporation Tax) or (0021) Income Tax (Other Than Companies).
  2. Financial Year.
  3. Assessment Year.
  4. Permanent Account No. (PAN) of Transferee (Payer/Buyer).
  5. Permanent Account No. (PAN) of Transferor (Payee/Seller).
  6. Category of PAN of Transferee.
  7. Category of PAN of Transferor.
  8. Confirmation of Permanent Account No of Transferee or Transferor. 
  9. Complete Address of Transferee or Transferor alongwith Email, Mobile No or Numbers of Buyer/Seller etc. 
  10. Type of Property either Land or Building (Shops, Apartments,  Flats, Bungalows etc. 
  11. Address of Property with PIN Code. 
  12. Date of Agreement/Booking. 
  13. Total Value of Consideration (Property Value).
  14. Payment Type either Lumpsum or in Installments. 
  15. Amount Paid/Credited from the List to the Transferor/Seller.
  16. Total Amount Paid/Credited.
  17. TDS Rate. 
  18. TDS Amount to be paid .
  19. Interest. 
  20. Fee.
  21. Total Payment.
  22. Value in Words. 
  23. Bank Name.
  24. Date of Payment/Credit.
  25. Date of Tax Deduction.
  26. Characters shown in Picture.  Characters are case sensitive.

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