Frequently Asked Questions
Who is liable for Compliance of TDS payment and TDS Return filing?
The purchaser of Property is responsible for deducting, payment and filing of TDS return while the amount needs to be deducted by the buyer from the payment to be made to the seller. For Example, if you buy a property and value of the property is Rs. 55 lakhs then you need to make payment to seller Rs. 54.45 Lakhs and deposit balance 45K as a Tax Payment and file a TDS return.
Will Seller get refund of TDS deducted?
It will depend on taxability of Seller, if at the time of filing their deducted Tax at Source (TDS) return it is found that there is no tax liability then the seller can claim a full refund of TDS. For example if the seller has reinvested amount is another property or bought bonds they can avail deduction under section 54 or 54EC, In that case, he can claim the refund.
What if seller refuses to accept 1% deduction?
This deduction is mandatory tax compliance and does not depend on whim and fancy of Seller. In such cases either it need to be explained to seller that if their tax liability turns NIL then they can claim refund by filing IT return. However in some case seller ask buyer to pay TDS over and above agreed sell price. Which is wrong and illegal. Simply walk away from such deal.
What is rate of deduction for NRI Sellers?
For NRI Sellers Rate of Deduction TDS in 20%. However NRI can file an application for Lower or NIL TDS certificate. Depending on his taxability such certificate can be issued by Income Tax Officer of their jurisdiction. AKT Associates can also assist to get Lower TDS certificate.
What will be rate of TDS if Seller does not have a Valid PAN Card?
TDS Rate will be 20% here, Solution is to apply for a PAN card quickly and then deduct TDS at 1% rate.
If there are two buyers or two sellers, will 50 Lakhs threshold will be calculated per person or Per Property?
50 Lakhs turnover will be counted on property and not on the basis of number of buyers or sellers.
What is the last date to file TDS from date of purchase of property?
TDS cum return need to be filed within 30 days from end of the month from the date you made payment to seller. For example if payment is made on 10th of Oct then TDS payment plus challan need to be done by 30th November.
What is rate of TDS if Seller is an Non Resident Indian (NRI)?
Rate of TDS for an NRI will be 20%, however, NRI can obtain a certificate for Lower or NIL TDS by applying to their jurisdictional income tax officer, It takes 7-15 days to obtain such certificate. AKT Associates has a dedicated team which can obtain lower or NIL TDS certificate on behalf any NRI person.
Do i need to submit form 16B to Bank or Builder or TDS payment challah will be sufficient?
Challan will serve the purpose of proof for payment of TDS, you don’t have to wait till form 16B is issued online. once online challan cum return is filed in form no 26QB and payment of tds is made, the process is complete from purchaser side. The same challan can be submitted to the bank and to the builder as well to initiate the loan approval and first agreement registration process
Why AKT Associates?
Expertise - That Counts
We are handling more than 1500+ successful clients and providing them with services which covers Legal, Technical, Taxation and other business compliance part. That all says a lot on our ways of working and our expertise in the area.
Experience - That Matters
At AKT associates we have been our client’s obvious choice since more than 20 years. For serving you with the best results we use our experience of decades which has exposed us with deep understand.
Efficiency - That reflects in everything
With a strong team which comprises of experts with qualification like CA, CS, MBA & LLB and they will all available with the wholesome result, with dedicated customer service team and support staff. We are always there to execute your work efficiently.
Cost - That saves a Lot
We touch the top position not just because we are the best in what we do but also because we know the value of your time and money. We know the value of your time so all the work by AKT Associates is performed on time and at around 70% less cost in comparison to all the other leading firms of the market that too without compromising on the quality aspect.
Conveniences - That says a Lot
The services of the firm are performed and delivered by using the cutting edge technology which makes the AKT Associates always available & deliver services right in your email. So it doesn’t matter where you are because we are always at your finger tips.
