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TDS On Sale Of Property : A Detailed Guide

The theory of TDS was brought into existence with an aim to collect tax from the very source of income. As per this theory, a person ( the deductor ) who is accountable for making a transaction of specified nature to any other person ( the deductee) shall deduct the tax at source and remit the same into the account of the Central Government. The deductee from whose income tax will be deducted at source would be authorized to get credit of the quantity which is totally based on the Form 26AS or maybe the TDS certificate issued by the deductor. Taxes will be deducted as per the rates especially mentioned in the relevant provisions of the Act or maybe the First Schedule to the Finance Act. Anyway, in case of making the transactions to non-resident individuals, the withholding tax rates especially specified under the Double Taxation Avoidance Agreements might also be considered! Everything will take place on Electronic mode or E-payment. One needs to submit the Challan 281 in their most preferred authorized bank branch in a physical mode of communication. According to the Finance Bill of 2013, TDS is acceptable on a deal of enduring property wherein the deal consideration of the property exceeds or is equal to Rs. 50,00,000 i.e. (Rupees Fifty Lakhs). Sec 194 IA of the Income Tax Act, 1961 stated that all of the agreements would effect from 1st of June, 2013. Tax @ 1% or maybe 0.75% will be subtracted every time ( this totally depends upon the date of the payment transacted to the seller) by the buyer of the property, especially at the time of making the transaction of the deal consideration. The tax that will be subtracted, should definitely be deposited to the government account through any one of the authorized bank branches of course of your own choice! For further assistance about the detailed procedure of TDS, connect us at propproper.com Points To Be Kept In Mind By the Buyer Of a Property Collection of the PAN (Permanent Account Number) of the Seller and also verification must be done along with the same Original PAN card document. At any certain cost, an error can not be committed in quoting the PAN or any other sort of other form of details in the online Form because there is no such online mechanism for such simple or difficult rectification of errors already committed while applying the Form. For the purpose of rectification, you can connect with your Income Tax Department. Subtraction of tax @ 1% or maybe 0.75% from the deal consideration. This absolutely depends on the date of the payment credited to the sellers account. Both the PAN cards of the buyer as well as the seller should mandatory be furnished in the online Form for furnishing important details regarding the deal transaction. Points To Be Kept In Mind By the Seller Of a Property Verification of the taxes is a must which has been already subtracted by the Buyer from the Seller's Form 26AS Annual Tax Statement Providing the Seller's PAN card information is mandatory to the buyer because it is always important to furnish necessary details about TDS to the Income Tax Department.