TDS for Immovable property

Key Provisions

• Applicable Section: Section 194-IA of Income Tax Act
• TDS Rate: 1% of the sale consideration
• Threshold Limit: Applicable when property value is ₹50 lakh or more
• Who Deducts TDS: Buyer (purchaser of property)
• Type of Property: Land, building, or both (excluding agricultural land in rural areas)

When to Deduct TDS?

• TDS must be deducted at the time of payment or credit to seller, whichever is earlier
• Applies even if payment is made in installments

Payment & Filing

• TDS must be deposited using Form 26QB
• Payment to be made within 30 days from the end of the month in which TDS is deducted
• After payment, buyer should issue TDS Certificate (Form 16B) to the seller

Important Points

• No requirement for TAN (Tax Deduction Account Number) for this transaction
• PAN of both buyer and seller is mandatory
• If PAN is not available, TDS may be deducted at higher rate (20%)
• TDS is calculated on total sale value, including charges like parking, club fees, etc.

Our Services Include

• TDS calculation and compliance support
• Filing of Form 26QB
• Generation of Form 16B
• Correction of errors in TDS filing
• Advisory for buyers and sellers