TDS on Purchase of Property: A Complete Guide

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TDS on Purchase of Property A Complete Guide
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Properties Covered
STUDIO SHODWE
Interestingly, the power to deduct TDS on a
property purchase lies with the buyer, not the
seller. According to Section 194IA of the IT
Act, the buyer must deduct 1 of the sale amount
for a property costing above ?50 Lakh.
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Scope of section 194-IA
Section 194-IA provides that any person, being a
transferee, responsible for paying (other than
the person referred to in section 194LA) to a
resident transferor any sum by way of
consideration for the transfer of any immovable
property (other than agricultural land) shall
deduct an amount equal to one percent of such
sum as income-tax at the time of credit of such
sum to the account of the transferor or at the
time of payment of such sum in cash or by the
issue of cheque or draft or by any other mode,
whichever is earlier.
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Details Required for TDS Payment
Every individual deducting TDS must obtain a TAN
(Tax Deduction Account Number). However, the
buyers do not need a TAN for TDS on Purchase of
Property. While filling out the form, they must
submit both parties names, addresses, and
contact details, along with the propertys
complete address, date of agreement and payment,
and total value. After completing the Home Loan
eligibility criteria, buyers can make the TDS
payment physically at the finance company or
online through net banking.
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When TDS Deduction is Not Necessary
STUDIO SHODWE
TDS deduction is not necessary under the
following circumstances If the propertys stamp
duty value or sale consideration is below ? 50
Lakh If the property is an agricultural land If
the seller is an NRI and Section 195 is applicable
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Than Yo
H T T P S / / W W W . P N B H O U S I N G . C O
M / B L O G / T D S - O N - P U R C H A S E - O
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