TDS is source of income that ensures continues inflow of revenue foreign and in countries like INDIA as well its regime has expanded since past years.
TDS covers many incomes like rent and some other payments etc.
Following its major breakthrough:o Income tax Department. AS the TDS is well followed and considered a good source of revenue both in F
with effective from 1ST June 2013
Any person purchasing Immovable property other than rural agricultural land of Rs 50 lac or more is required to deduct tax @ 1 % from the payment made to seller.
Hence the minimum amount of tax rate starts from 50,000 i.e, 1% of 50lac.
How to pay TDS on Property?
The responsibility of payment of TDS on property is divided between purchaser and seller
Purchaser of Immovable property’s responsibility:
- Deduct tax @ 1% from payment made to seller.
- Verify and Collect PAN of the seller
- File the statement online a t www.tin-nsdl.com
- Fill in the PAN of the seller & purchaser while providing information regarding sale transaction in FORM 26 QB without any error
- Tax deducted to be deposited through e payment only, either at time of Filing of FORM 26QB or subsequently depending upon facility at any authorized bank or net banking can also be used
- When opted for Subsequent filing:
- when the purchaser of Immovable property wishes to file the return in FORM 26QB subsequently the tax should be paid electronically at any authorized BANK within 7 days after online filing of statement in above point
- Any delay beyond 7 days in payment of tax will make the statement Invalid and FORM26QB need to be filed again
- The TDS certificate should be downloaded from the traces
Seller of Immovable property’s responsibility:
- Provide PAN to purchaser of property
- Verify tax deposited by purchaser in seller FORM 26 QB in Annual Tax statement
- TAN is not required