TAX DEDUCTED AT SOURCE on Purchase of Immovable Property (Section 194IA) except Agricultural lands

NEW TAX ON PROPERTY

TAX DEDUCTED AT SOURCE  on Purchase of Immovable Property (Section 194IA) except Agricultural lands

1. Section has been inserted w.e.f. 01.06.2013 in the Finance Act.

2. Deductor & Deductee: Any person (being a transferee) responsible for paying (other than person referred to in section 194LA) to a Resident transferor any sum by way of consideration for transfer of any immovable property (other agricultural land in rural area in India), is liable to deduct the TDS under this section.

3. Time of deduction: At the time of payment or credit to the transferor in the books of transferee or before registration of the property, whichever is earlier?

4. Rate of TDS:-

a. In case of PAN of Deductee is available-1%

b. In case of NO PAN of Deductee is available-20%

5. Limit:

A). TAX DECUTED AT SOURCE IS FOR INDIVIDUAL/SEPERATE PROPERTIES EXCEEDING RS50,00,000/-(RUPEES FIFTY LAKHS AND ABOVE).

B). NO TDS ON PROPERTY BELOW Rs49,99,999/-.

C). GUIDANCE VALUE FIXED BY THE RESPECTIVE STATE GOVERNMENTS OR THE CONSIDERATION(SALE VALUE) SHOWN IN THE SALE DEED(WHICHEVER IS HIGHER) WILL BE THE BASIS FOR THE PAYMENT OF TDS.

6. Provision of TAN not applicable.

7. Immovable property means any property/site/plot/ land/Converted land or property or building or part of building or commercial complex or office complex. Such may be situated in India or may be situated out of India, EXCEPT AGRICULTURAL LANDS.

8. The transferor and the transferee may be a dealer, agent, sale agreement holder, GPA/POA holder, owner, landlord, building owner or anybody authorized or claiming under the seller or owner, must pay TDS.

9. TDS under section 194IA is to be deposited on CHALLAN cum Statement on Form 26QB. Online Payment of TDS is mandatory. Online payment CHALLAN is available in TIN NSDL Website.

10. TDS certificate must be issued to deductee (buyer) in Form 16B within 15 days from due date of deposit.