As per Finance Bill of 2013, TDS is applicable on
sale of immovable 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 authorized 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:
- Deduct tax @ 1% from the sale consideration.
- Collect the Permanent Account Number (PAN) of the Seller and verify the same with the Original PAN card.
- PAN of seller as well as Purchaser should be mandatorily furnished in the online Form for furnishing information regarding the sale transaction.
- 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:
- Provide your PAN to the Purchaser for furnishing information regarding TDS to the Income Tax Department.
- Verify deposit of taxes deducted by the Purchaser in your Form 26AS Annual Tax Statement.
