TDS On Purchase Of Property

As per Finance Bill of 2013, Tax Deducted at Source (TDS) is applicable on sale of immoveable property wherein the sale consideration of the property exceeds or is equal to INR 5,000,000 (INR 5 million). Sec 194 IA of the Income Tax Act, 1961 states that for all transactions with effect from 1 June 2013, Tax @ 1% should be deducted by the purchaser of the property at the time of making payment of sale consideration. Tax so deducted should be deposited to the Government Account through any of the authorized bank branches. Facility for furnishing information regarding the transaction of sale of immoveable property and payment of TDS thereof can be availed through us.

Points to be remembered by the Purchaser of the Property:
Deduct tax @ 1% from the sale consideration.

Collect the PAN of the seller and verify the same with the original PAN card. PAN of the seller as well as the purchaser should be mandatorily furnished in an online form for furnishing information regarding the sale transaction. Do not commit any error in quoting the PAN or other details in an online form as there is no online mechanism for rectification of errors. For the purpose of rectification you are required to contact Income Tax Department of India.

We help in processing TDS on behalf of our clients.