As you may be aware, Govt. has introduced the concept of Tax Deducted at Source (TDS) in case of property transactions too.
Accordingly, w.e.f. June 1, 2013, if you buy any land or property (other than agricultural land) that is valued at more than Rs.50 lakhs, you have to deduct 1% of the total value payable to the seller as TDS...and deposit it with the Govt.
Following are some of the key provisions in this regard:
- The amount to be deducted is 1%. (However, if the seller does not give his PAN No. then the amount to be deducted would be 20%.)
- If there is bank loan involved, then either you or the bank has to deduct 1% before the loan is disbursed
- TDS deduction is applicable even for properties booked earlier and whose payment/part-payment is payable after Jun 1
- TDS deducted has to be paid online on Income Tax Department's website (or download the form and pay at authorised banks)
- Normally for TDS, the tax deductor has to have a Tax Deduction Account No. (TAN No.). However, this will not be necessary for TDS on property transactions
- After paying the TDS, you will have to generate the TDS certificate and give it to the seller
Online TDS form is quite simple and following details need to be furnished:
- Buyer's PAN No.
- Seller's PAN No.
- Buyer's Address
- Seller's Address
- Property's Address
- Amount to be paid
- TDS amount
Accordingly, w.e.f. June 1, 2013, if you buy any land or property (other than agricultural land) that is valued at more than Rs.50 lakhs, you have to deduct 1% of the total value payable to the seller as TDS...and deposit it with the Govt.
Following are some of the key provisions in this regard:
- The amount to be deducted is 1%. (However, if the seller does not give his PAN No. then the amount to be deducted would be 20%.)
- If there is bank loan involved, then either you or the bank has to deduct 1% before the loan is disbursed
- TDS deduction is applicable even for properties booked earlier and whose payment/part-payment is payable after Jun 1
- TDS deducted has to be paid online on Income Tax Department's website (or download the form and pay at authorised banks)
- Normally for TDS, the tax deductor has to have a Tax Deduction Account No. (TAN No.). However, this will not be necessary for TDS on property transactions
- After paying the TDS, you will have to generate the TDS certificate and give it to the seller
Online TDS form is quite simple and following details need to be furnished:
- Buyer's PAN No.
- Seller's PAN No.
- Buyer's Address
- Seller's Address
- Property's Address
- Amount to be paid
- TDS amount
