Who pays tds on sale of property?

Who pays TDS on sale of property?

Tax Deducted at Source (TDS) is a term that refers to the amount of tax that is deducted at the source. As the title indicates, a tax is paid to the seller upon making a purchase. It is a direct tax, apart from income tax, that is paid at the point of sale. The purchaser or the person paying the dealer is responsible for subtracting the TDS and sending it to the Income Tax Department on account of the seller/company taking money. This tells you about who should pay TDS on sale of property or who will pay TDS on sale of property. 

The TDS is calculated as a percentage of the total payment. TDS rates change for different types of income, according to several parts of the Income Tax Act. According to the Finance Bill 2013, a buyer of a parcel of land (apart from rural farmland) worth Rs 50 lakh or more must pay a 1% income tax on the payment provided to a registered trustee.

TDS on sale of property:

1) TDS is charged on the transfer of immovable property apart from farm land under Section 194-IA of the Income Tax Act. Residences, property or sites, private residences, and investment buildings are all examples of immovable property.

2) Only if the transaction price of the asset exceeds Rs. 50 lacs is TDS applicable (Rupees Fifty Lacs). TDS is not charged if the property is sold for less than Rs. 50 lacs.

3) The sale section contains the property's sale price as well as any supplementary payments made for things like auto parking, membership card, power and water meter services, etc.

4) TDS is calculated as a percentage of the entire sale price of the property. Because of the economic recession brought on by the Coronavirus epidemic, the TDS rate on property sales has been decreased to 0.75 percent of the entire sale consideration if the sale is completed between May 14th and March 31st, 2021.

You must have got an idea about who pays TDS on sale of property.