TDS on property above 50 lakhs

• With the e-tax option, you can pay the TDS online.
• You can pay TDS via the e-tax payment option through net banking or by visiting the bank branch authorised for payment of tax.
• You can visit www.tin-nsdl.com and click on the service tab.
• Tap on 'TDS on sale of the property.’
• After this, tap on “Online form for furnishing TDS on property (Form 26QB)
• Tap on the form and update details related to property, sale consideration, and PAN of buyer and seller.

What is the TDS on property purchase above 50 lakh? Tax Deducted at Source (TDS) is a mechanism in which the payer deducts a certain amount of tax before making a payment to the payee. In the context of property transactions in India, TDS is applicable when purchasing a property that costs more than ₹50 lakh. The provisions for TDS on purchase of property above 50 lakhs

are outlined under Section 194-IA of the Income Tax Act, 1961.

How to pay TDS on property purchase above 50 lakhs

?

TDS is applicable when an individual, Hindu Undivided Family (HUF), company, or firm is purchasing an immovable property (except agricultural land) for a consideration exceeding ₹50 lakh.

1. Rate of TDS:

   The TDS rate for such transactions is 1% of the total consideration amount.

2. Payer's Responsibility:

   The buyer of the property (payer) is responsible for deducting the TDS before making the payment to the seller (payee).

3. Time of Deduction:

   TDS is to be deducted at the time of making payment or crediting the consideration amount, whichever occurs earlier. If the payment is being made in installments, TDS should be deducted at each installment.

4. TAN Requirement:

   The buyer needs to have a Tax Deduction and Collection Account Number (TAN) to deduct TDS. If the buyer doesn't have a TAN, they should apply for one.

5. PAN Requirement:

   Both the buyer and the seller must provide their Permanent Account Numbers (PAN) to the buyer.

6. TDS Payment and Reporting:

   The TDS amount deducted should be paid to the government and reported using Form 26QB through the online portal of the Income Tax Department. This form includes details about the property, buyer, seller, and transaction.

7. TDS Certificate:

   After deducting and paying TDS, the buyer should provide the seller with a TDS certificate in Form 16B. This certificate serves as proof that TDS has been deducted and paid.

8. Exemptions:

   There are certain exemptions and conditions related to TDS on property transactions, such as cases where the property is acquired by inheritance, gift, or compulsory acquisition. It's important to understand these exemptions and comply with the rules accordingly.

Remember that tax laws and regulations can change, so it's advisable to consult with a tax professional or legal expert to ensure accurate and up-to-date information regarding TDS on property transactions.

TDS on the property is applied when buying real estate such as a building, a portion of a building, or a plot of land. It can be rewarding because doing so can result in significant tax savings for both the principal and interest owed. Let me share TDS on property purchase above 50 Lakhs Section and its various aspects here.

What is TDS on property purchase above 50 Lakhs?

According to the Finance Bill of 2013, TDS is charged on the sale of real estate where the sale price is greater than or equivalent to 50,000. According to Section 194 IA of the Income Tax Act of 1961, for all transactions that take place after June 1, 2013, the buyer of the property must deduct Tax @ 1% or 0.75% when paying the sale consideration. Any authorised bank branch should be used to deposit the tax that has been so deducted into the government account. TDS on flat purchase above 50 Lakhs must be clear to you now.

What is TDS on property sale above 50 Lakhs?

If the property value exceeds Rs. 50 Lakhs, TDS on Sale must be deducted at a rate of 1%. It is also crucial to remember that 1% TDS is only applicable if the vendor is an Indian resident. The rate of TDS will change if the seller is an NRI or a non-resident of India.

TDS on the Sale of Property by NRI would be imposed even if the Transaction Value was less than Rs. 50 lakhs. TDS on the Sale of Property by NRI would be 20% + Surcharge + Fee. now you know 

TDS on property purchase above 50 Lakhs section must be clear to you.