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Who is liable to deduct TDS on sale of property?

Posted on August 12, 2022 by Author

Who is liable to deduct TDS on sale of property?

TDS has to be deducted by the buyer on the entire amount that is paid or credited to the seller when the amount exceeds Rs 50 lakh. For example, if a property is bought for Rs 70 lakh then TDS has to be deducted on the entire amount–that is Rs 70 lakh, not on just the Rs 20 lakh that exceeds the Rs 50 lakh threshold.

Who pay TDS while buying property?

Buyers have to deduct and pay TDS to the government on property valued over Rs 50 lakhs. The responsibility to deduct and submit the TDS lies on the buyers and not on the seller.

Who is liable tax at source?

Introduction​ The concept of TDS was introduced with an aim to collect tax from the very source of income. As per this concept, a person (deductor) who is liable to make payment of specified nature to any other person (deductee) shall deduct tax at source and remit the same into the account of the Central Government.

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What happens if TDS is not deducted on purchase of property?

The penalty of not paying TDS on immovable property can be up to Rs. 1 lakh under Section 271H. To avoid penalty, you can pay the TDS, interest amount and late payment fee as soon as you receive a tax notice.

How much is TDS on sale of property?

Rate of TDS on Sale 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.

How do I claim 1 TDS on sale of property?

How to Claim TDS on Sale of Property?

  1. Provide PAN to the buyer who in turn will fill-up the form online and submit to the Income Tax Department for TDS.
  2. Verify that the property buyer has deposited the taxes deducted from sale consideration and should be reflecting in the Form 26AS Annual Tax Statement.
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Can buyer claim TDS on property?

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. But, the seller is allowed to avail credit of the same or claim TDS refund by filing his ITR.

Is TDS on property reduced?

The buyer will deduct TDS at the rate of 1\% of the total sale value. If property valuation is less than 50 lakhs, then there is no deduction in TDS payment on the sale of the property. The buyer can pay in instalments too. In that case, TDS should be deducted with every instalment.

What would be the consequences if tax is not deducted at source?

Penalty for companies for not depositing or not deducting TDS on time. The employer can make the interest payment on such late payment of TDS before filing TDS returns or demand raised by TRACES. Also, the interest paid delay while depositing TDS is not allowed as an expense under the income tax provisions.

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Who is liable for advance tax?

As per section 208 of the Income Tax Act 1961, every person whose estimated tax liability for the year is more than or equal to `10,000 is liable to pay advance tax. Those who are excluded from paying advance tax are senior citizens who are above the age of 60, not having any income from business or profession.

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.

How can I claim TDS refund on property sale?

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