TDS on Property Filing 194LA

Overview & Concept

What is TDS on Property ?

TDS on Sale of Property with value exceeding or equal to Rs. 50 Lakhs. It explains When your are liable to deduct TDS on Sale of Property, When to deposit the TDS to Government after deduction, How to make payment of TDS to Government,  Details required for filing the Form 26QB and how to Request for Form 16B [TDS Certificate for Sale of Property]

TDS is required to deduct irrespective of type of property whether it is land or building or vacant plot, residential or commercial or industrial property. If GST is levied on transaction value for purchase of property, then TDS would be deducted on the amount excluding GST amount.

When to Deduct TDS on Property ?

As per provisions contain in sec 194-IA of Income Tax Act, if any buyer responsible for paying to a resident seller any amount exceeding or equal to Rs. 50 Lakhs for sale of immovable property other than agricultural land, then the buyer is required to deduct TDS @ 1% of consideration for transfer of immovable property. As per Finance Act 2019, Consideration for transfer of immovable property shall include all charges of the nature of club membership fee, car parking fee, electricity or water facility fee, maintenance fee, advance fee or any other charges of similar nature, which are incidental to transfer of the immovable property.

Even when the amount is paid in installments, then even you are liable to deduct TDS @ 1% on the amount paid if the total amount paid is equal to or exceeds Rs. 50 Lakhs.

TDS is required to deduct irrespective of type of property whether it is land or building or vacant plot, residential or commercial or industrial property. If GST is levied on transaction value for purchase of property, then TDS would be deducted on the amount excluding GST amount.

When to deposit the TDS to Government after deduction?

After deduction of TDS on the amount, it is to be deposited to Central Government within a period of 30 days from the end of the month in which deduction is made and it should be accompanied by a statement in Form 26QB. [Rule 30(2A)]
The due date of payment of TDS on transfer of immovable property has been extended to thirty days (from existing seven days) from the end of the month in which the deduction is made.Example: If a taxpayer has made payment of sale consideration in the month of February, then corresponding TDS should be deposited on or before (thirty days) March 30th.

Also Form 26QB is to be filed within a period of 30 days from the end of the month in which deduction is made.

What are the Docs and Details as required for TDS Filings ?

In the First Tab (Taxpayer Info) following details are required to be filled:

• Tax Applicable (0020) Corporation Tax (Companies) (0021) Income Tax (Other than Companies)  Select code 0020 if you are a company (person deducting TDS), otherwise select 0021 for persons other than company.
• Financial Year– It will be auto populated on the basis of Date of Payment / Credit filled in the form.
• Assessment Year– It will be auto populated on the basis of Date of Payment / Credit filled in the form.
• Type of Payment– It is auto selected as (800) TDS on Sale of Property.
• Status of Payee / Seller / Transferor– Select Resident or Non-Resident .
• Permanent Account No. (PAN) of Transferee (Payer/Buyer)– Enter the PAN of Buyer which is compulsory required to fill the form. After filling the PAN, it will automatically confirm the category of PAN of Transferee whether it is company, individual etc
• Permanent Account No. (PAN) of Transferor (Payee/Seller)– Enter the PAN of Seller which is required so that it is reflected in Form 26AS of Seller and he/she can claim TDS on sale of property while filing Return of Income.
• Complete Address of the Transferee (Buyer)– It also require whether there are more than one transferee / buyer.
• Complete Address of the Transferor (Seller)– It also require whether there are more than one transferor / seller.
• Complete Address of the Property Transferred– It includes details like type of property whether it is land or building, Date of Agreement / booking,
• Total Value of Consideration, Payment Type (Lump sum or Installment)
• Amount paid / credited– Enter amount in figures and words.
• Tax Deposit Details– Provide details like Total Amount paid / credited, Basic Tax , Interest , Fee (if any).

Date of Payment / Credit and Date of Tax Deduction is required to calculate the interest, fee if any which is required to be paid in case of late payment.

How to  Request for Form 16B [TDS Certificate for Sale of Property] ?

• Request can be made at tdscpc.gov.in after creating New ID as Tax payer.
• Generally after payment of challan, it takes 4-5 working days for processing of challans, only after that you can request for Form 16B.
• Form 16B is itself an evidence that TDS deducted on payment to seller has been deposited to government.

Why Call CA ?

We get your Income tax return  done with complete online support. You need not to step outside your home and we guide you to enter into the business world hasselfree. At Call CA , our team helps you to understand the concept of TDS filing and help you to arrange the right documention done for the TDS Filings . Call CA has a TAT for TDS Return is 1working days 

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