TDS on Sale of Immovable Property other than agricultural land - Section 194-IA
Want to know about “TDS on transfer of Immovable Property” ? We have got you covered. Read AtoZ of Section 194IA of Income Tax Act.
Following Topics of 194IA will be covered in this
Applicability and Rate of TDS
Every transferee responsible for paying any sum as consideration for transfer of immovable property (land, other than agricultural land, or building or part of building) to a resident transfer shall deduct tax, at the rate of 1% of such sum.
Time of deduction
The deduction is to be made at the time of credit of such sum to the account of the resident transferor or at the time of payment of such sum to a resident transferor, whichever is earlier.
Tax is not required to be deducted at source where the total amount of consideration for the transfer of immovable property is less than Rs.50 lakh.
Non-applicability of TDS under section 194IA
Since tax deduction at source for compulsory acquisition of immovable property is covered under section 194LA, the provisions of section 194-IA do not get attracted in the hands of the transferee in such cases
No requirement to obtain TAN
The provisions of section 203A containing the requirement of obtaining Tax deduction account number (TAN) shall not apply to the person required to deduct tax in accordance with the provisions of section 194-IA.
Time and mode of payment of tax deducted at source
Time and mode of payment of tax deducted at source under section 194-IA to the credit of Central Government, furnishing challan-cum-statement and TDS Certificate [Rules 30, 31A & 31]
- Time and mode of payment of tax deducted at source under section 194-IA to the credit of Central Government, furnishing challan-cum-statement and TDS Certificate [Rules 30, 31A & 31]
- The amount so deducted has to be deposited to the credit of the Central Government by electronic remittance within the above mentioned time limit, into RBI, SBI or any authorized bank [Rule 30].
- Every person responsible for deduction of tax under section 194-IA shall also furnish to the DGIT (Systems) or any person authorized by him, a challan-cum-statement in Form No.26QB electronically within 30 daysfrom the end of the month in which the deduction is made [Rule 31A].
- Every person responsible for deduction of tax under section 194-IA shall furnish the TDS certificate in Form No.16B to the payee within 15 days from the due date for furnishing the challan-cum-statement in Form No.26QB under Rule 31A, after generating and downloading the same from the web portal specified by the DGIT(Systems) or the person authorized by him [Rule 31]