What Do You Need To Know To Pay Tds Online For Sale Of Property

By Author: Aashna Aneja
Total Articles: 12

According to section 1941A, if a buyer buys immovable property valuing more than 50 lakhs rupees then he must deduct the TDS. Following the deduction, the buyer needs to pay TDS to the government. However, it is not applicable to agricultural land. If you would like to discuss your queries with Adroit Valuation tax consultation reason for introduction of TDS on the sale of property are usually under valuable with a view to improving the reporting such a transaction. TDS on Property Sale to regulate the real estate sector like computerization of land records rule of main objective are not being registered track all the high value real estate transactions.

Information required for filing TDS online – Adroit Valuation

1. Buyer – Buyer is called as Transferee. The information required is PAN, name and complete address. In case there are a number of buyers, the details are required for all the buyers.

2. Seller - Seller is called Transferor. The information required is PAN, name and complete address. In case there are a number of sellers, the details are required for all the buyers.

3. Property - The complete address of property

4. Transaction Details- Date of the agreement, its value, payment type or mode of payment.
Foreign buyer or Seller

In case of a NRI buyer, the TDS will still be deducted from the buyer, as the seller is an Indian. However, in case when the seller is an NRI and the buyer is an Indian then section 195 will be applied. As per this section, TDS is applicable even if the value of the property is less than 50 lakhs. If capital gain is long-term, the deduction would be 20.66% on the selling price of property. In case of short term capital gains, TDS deduction would be 33.99%.

Tax deducted on Property to be deposited and Procedure for Deposit of TDS on Property Sale with Govt.

The Buyer of Property is required to deduct TDS on Property from the Purchase price of the property and deposit this TDS with the Income Tax Department. Form 26QB is required to be furnished mentioning all details which include

• PAN No. of the Buyer
• Address of the Buyer
• PAN No. of the Seller
• Residential Status of the Seller
• Address of the Seller
• Address of the Property transferred
• Date of Payment
• Amount Paid
• Date of Agreement
• Total Transaction Value

Penalty for Delay in TDS Filing

1 - Buyer fails to deduct TDS

In case of failure to deduct TDS, a penalty of 1% per month from the date on which tax was deductible is applicable

2 - Buyer fails to deposit TDS amount to the Government

In case of failure to deposit TDS on Property Sale, a penalty of 1.5% per month from the date on which tax was collectible to the date of actual deposit is applicable.