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TDS Process Documentation

This document discusses the tax deducted at source (TDS) requirements for the sale of immovable property where the sale consideration exceeds Rs. 50 lakhs under section 194-IA of the Indian Income Tax Act. It notes that the purchaser must deduct 1% TDS at the time of payment of the sale consideration and remit it to the government within 7 days of the month following deduction. The document provides details on compliance requirements like filing Form 26QB, issuing Form 16B, and prerequisites for remittance like PAN numbers and property details. It also covers key aspects like applicability for multiple buyers, exclusions, and implications for NRIs.

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29 views

TDS Process Documentation

This document discusses the tax deducted at source (TDS) requirements for the sale of immovable property where the sale consideration exceeds Rs. 50 lakhs under section 194-IA of the Indian Income Tax Act. It notes that the purchaser must deduct 1% TDS at the time of payment of the sale consideration and remit it to the government within 7 days of the month following deduction. The document provides details on compliance requirements like filing Form 26QB, issuing Form 16B, and prerequisites for remittance like PAN numbers and property details. It also covers key aspects like applicability for multiple buyers, exclusions, and implications for NRIs.

Uploaded by

prafulvg123
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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TDS on Transfer of

Immovable Property
U/s 194-IA of Income Tax Act
Applicability
As per Finance Bill of 2013, TDS is applicable on sale of immoveable
property wherein the sale consideration of the property exceeds or is equal
to Rs 50,00,000 (Rupees Fifty Lakhs)

For sale consideration both the values of agreement of sell and agreement to
build / development agreement to be considered.

Applicable for all transactions / payments w.e.f 1st June 2013, as stated u/s
194 IA of the Income Tax Act.

Tax @ 1% should be deducted by the purchaser of the property at the time


of making payment of sale consideration.

It applicable for more than one Transferee/Buyer or Transferor/Seller.

Ozone Group, #38 Ulsoor Road, Bangalore


Compliance
Tax is to be deducted either at the time of making payment or crediting of
any sum as consideration for transfer of immovable property, whichever is
earlier.

Sum deducted u/s 194-IA shall be remit to Government within 7 days from
end of the month in which the deduction is made.

TDS payment U/s. 194-IA shall be accompanied by a challan-cum-


statement in Form No.26QB.

Deductor is liable to furnish the certificate of the tax deducted at source in


Form No. 16B to the deductee within 15 days from the due date of
furnishing Form No. 26QB.

Ozone Group, #38 Ulsoor Road, Bangalore


Pre-requisites for remittance
PAN of the buyer and the seller (for seller PAN finance or CRM team).

Address of the immovable property (as mention in the agreement, include


unit no.).

Address of the buyer and seller (as mention in the agreement).

Whether the buyer is single / co-owner(as mention in the agreement).

Date of agreement / booking (as per the agreement or booking form).

Total value of the property (as mention in the agreements).

Total amount being paid now (at the time of payment).

Amount of TDS (i.e. 1% of the payment)

Ozone Group, #38 Ulsoor Road, Bangalore


Key aspects
In case of more than one buyer, all buyers are liable to deduct and remit tax
separately.

No TDS on adv. maintenance, corpus fund, registration charges, etc.,

TDS is applicable even on VAT & Service Tax

Applicable for NRI customers also NRI should obtain PAN at least for
TDS purpose, if not obtained already.

Credit will be given to customer account on submission of Form 16B.

In case of customers availing loan, the onus is on the customers to deduct


tax and not on the bank.

Ozone Group, #38 Ulsoor Road, Bangalore


PAN Card Copy

Ozone Group, #38 Ulsoor Road, Bangalore


Tutorial for remittance of TDS
issued by department

Ozone Group, #38 Ulsoor Road, Bangalore


Select 26QB

https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp
Step 1 : Select Income tax (Other
than companies)

Step 2 : Select the


financial year of the
payment done.

Step 3: Customer PAN Step 4: Ozone PAN


Number Number (AAECM5394G)

Step 5: Retype Customer Step 6: Retype Ozone PAN


PAN Number Number
Step 7: Customer Address Step 8: Ozone Address
with PinCode. with PinCode.

Step 10: If TDS is paid


for two applicants, then
Step 11: Please select
this is supposed to be
No
selected as Yes else
No
Step 12 : Select Building

Step 13 : Ozone Urbana Project


address with Pin Code

Step 14 : The date of booking or


Step 15 : The value of Unit.
Agreement with Ozone Urbana

Step 16 : if the customer wi


pay TDS on total cost, Lum
to be selected, else Installe
Step 17: The TDS value
on which customer is
paying the TDS.

Step 18: 1%

Step 19: If at all there is


any delay in paying the
TDS, Interest have to
calculated @ 1.5% on
total TDS payable on pro
rata basis.
Step 20: Bank details
through which the
payment is to be done

Step
Step21:
20:Date
Bankwhen
details
the
value
through
of TDSwhich
has the
been
payment
accounted.
is to be done

Step 22: Once all the


above data is furnished
properly, Can click on
Proceed.
Same should be processed and paid
by their bank. And the challans have
to be downloaded from the bank.
Later form 16 have to downloaded
and sent to Ozone for reference.

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