What is TDS immovable property?

From 1 June 2013, when a buyer buys immovable property (i.e. a building or part of a building or any land other than agricultural land) costing more than Rs 50 lakhs, he has to deduct tax at source (TDS) when he pays the seller. This has been laid out in Section 194-IA of the Income Tax Act.

How is TDS on immovable property calculated?

TDS is required to be deducted @ 1% on the amount payable to the seller of property. If the PAN number of the seller is not available then the TDS is required to be deducted @ 20%. No tax is required to be deducted where the total amount of consideration (selling price of property) is less than Rs. 50 lakhs.

What is the TDS on purchase of property?

TDS on Sale of property is required to be deducted @1% if the property value is more than Rs. 50 Lakhs. This TDS is required to be deducted for all transactions after 1st June 2013 if the property transaction value is more than Rs. 50 Lakhs.

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Is TDS on immovable property refundable?

A. Yes, TDS on property is refundable. At the time of sale of property, buyer is required to deduct TDS on property and deposit the same with the government.

How can we avoid TDS on immovable property?

To avoid penalty, you can pay the TDS, interest amount and late payment fee as soon as you receive a tax notice. Under Section 201, you’ll have to pay an interest of 1% a month if tax wasn’t deducted and 1.5% if tax was deducted but not paid to the government.

Is TDS applicable for immovable property?

As per the Finance Act of 2013, TDS is applicable on the transfer of immovable property, wherein the consideration of the property exceeds or is equal to Rs 50 Lakhs.

How do I show immovable property in ITR?

For immovable properties i.e. land and building owned by you as on 31st March, 2021, you have to provide the description of the asset, its address and the cost of such property. All the assets owned by you have to be disclosed whether purchased by you or acquired through gift or inheritance.

How can I claim TDS amount?

You just need to visit the income tax portal and login to download the relevant form for an income tax refund. Enter all the particulars and submit the form. If the employer has deducted tax when you are not eligible for it, you can claim the amount by filing income tax returns (ITR).

How can I save my tax if I sell my property in India?

Exemptions from your Gains that Save Tax Section 54F (applicable in case its a long term capital asset)

  1. Purchase one house within 1 year before the date of transfer or 2 years after that.
  2. Construct one house within 3 years after the date of transfer.
  3. You do not sell this house within 3 years of purchase or construction.
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Can I pay TDS on property in advance?

Suppose I have to pay an installment of Rs. 20,00,000 on March 15, 2021, can I pay TDS on property in advance on the whole price of the property? The answer is NO.

Is TDS applicable on resale flat?

TDS is applicable on sale of properties only if its consideration value exceeds Rs. 50 lacs (Rupees Fifty Lacs). If the property is sold for below Rs. 50 lacs, no TDS is payable.

What is the meaning of Deductee?

One from whom tax is deducted. noun.

When should TDS be paid on property sale?

​Due date. The due date of payment of TDS on transfer of immovable property is 30 days from end of the month in which the deduction is made.

When should we pay TDS?

What is the due date for depositing the TDS to the government? The Tax Deducted at Source must be deposited to the government by 7th of the subsequent month. For instance: TDS deducted in the month of June must be paid to the government by 7th July.