Wondering Can builder pay TDS on behalf of buyer? Let me say that the responsibility to deduct TDS (Tax Deducted at Source) on the sale of property rests solely with the buyer. Even if the property is purchased through a home loan or from the builder, the buyer must make the TDS payment.
The TDS (Tax Deducted at Source) rate for property transactions in India is 1% of the sale consideration (excluding any additional charges). However, there are exceptions:
Lower Deduction Certificate (LDC): If the seller possesses a valid LDC issued by the Income Tax Department, the TDS rate may be lower or even nil, depending on the specified rate in the LDC.
When calculating the TDS (Tax Deducted at Source) amount for your property sale, follow these steps:
Sale Consideration: Determine the total sale amount for your property.
Threshold: If the property cost exceeds Rs. 50 lakh, TDS applies.
TDS Rate: The buyer (you) must deduct TDS at 1% of the entire sale amount exceeding Rs. 50 lakh.
Example: If your property costs Rs. 60 lakh, TDS is calculated on Rs. 60 lakh, not just the amount above the threshold (i.e., not just Rs. 10 lakh).
Remember, TDS ensures compliance with tax regulations during property transactions.
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Who Pays TDS on Sale of Property?
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Can Builder Pay TDS on Behalf of Buyer?
Pritam
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56 days
2024-07-14T17:00:08+00:00 2024-07-14T17:00:09+00:00Comment
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