Have you bought any property above 50 Lakhs?
Filing of TDS return is mandatory
File TDS return @ Rs 2499/- only
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Send Documents as requested by us
Pay the tax challan generated by us
TDS return filed and acknowledgement sent
After 7 days get form 16B issued
PAN Card copy of buyer/s and seller/s
It is mandatory to file TDS return by buyer
1 working Day for Challan
Quick TDS Filing
Every buyer who is buying a House Property more than 50 Lakhs need to deduct 1% from payment to be made to a seller and pay it to Govt. Online as a TDS and file a return for it. Post-filing buyer needs to download form 16B and send it to the seller. TDS payment challan also needs to be submitted to Bank from where the buyer is availing a home loan. Failure to do this compliance the buyer will be liable for late fees and penalty. As Per Provision of Income Tax Act TDS on Property should be paid within 30 days from time of payment. failing to which may invite a notice to the buyer(s) and the seller(s). Sale on Property also needs to be mentioned while filing income tax returns.TDS can be deposited in any of the nationalized banks branches, who are authorized to accept TDS payment. It’s important to note that sales of Agricultural Land are not covered under TDS on Property, Hence there will not be any TDS on the property on the sale of agricultural land as such transaction is not a specified Property Transaction.
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
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