Guidelines

Is TDS applicable for purchase of new flat?

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Is TDS applicable for purchase of new flat?

Requirements of section 194IA From 1 June 2013, when a buyer buys immovable property (i.e. a building or part of a building or any land other than agricultural land) costing more than Rs 50 lakhs, he has to deduct tax at source (TDS) when he pays the seller.

Can I deduct TDS on property purchase from NRI?

When an NRI sells property, the buyer is liable to deduct TDS @ 20\%. In case the property has been sold before 2 years(reduced from the date of purchase) a TDS of 30\% shall be applicable.

How do I pay TDS on my builder?

I. Steps to fill form 26QB :

  1. Go to TIN NSDL website​ ( www.tin-nsdl.com ).​
  2. Under ‘TDS on sale of property’, click on “Online form for furnishing TDS on property (Form 26QB)”
  3. Select the applicable challan as “TDS on Sale of Property”.
  4. Fill the complete form as applicable.
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Can we claim TDS on purchase of property?

A. Yes, TDS on property is refundable. At the time of sale of property, buyer is required to deduct TDS on property and deposit the same with the government. But, the seller is allowed to avail credit of the same or claim TDS refund by filing his ITR.

When should you pay TDS on property purchase?

The due date of payment of TDS on transfer of immovable property is 30 days from end of the month in which the deduction is made.

What happens if TDS is not deducted on purchase of property from NRI?

In case the buyer fails to deduct the TDS (wholly or partly) or fails to deposit the TDS with the Government, then the buyer (i.e. Deductor) would be liable to pay penalty under section 271C. Here, the defaulter would be required to pay penalty amounting to sum equal to the TDS not deducted or TDS not paid.

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How can I claim TDS amount?

You just need to visit the income tax portal and login to download the relevant form for an income tax refund. Enter all the particulars and submit the form. If the employer has deducted tax when you are not eligible for it, you can claim the amount by filing income tax returns (ITR).

What is TDS percentage on purchase of property?

Sec 194 IA of the Income Tax Act, 1961 states that for all transactions with effect from June 1, 2013, Tax @ 1\% or 0.75\% should be deducted (depending upon the Date of Payment/Credit to the Seller) by the purchaser of the property at the time of making payment of sale consideration.