TDS on Property Purchase

Tax Deducted at Source (TDS) on property purchase, also known as Section 194IA of the Income Tax Act, 1961, mandates that the buyer of a property deduct TDS at the rate of 1% from the total sale consideration if it exceeds Rs. 50 lakh. This deducted amount is then deposited with the Income Tax Department (ITD) on behalf of the seller.

Applications for TDS Return on Property Purchase

The TDS deducted on property purchase must be reported to the ITD through Form 26QB, which is filed electronically using the ITD’s e-Filing Portal or through our commercial tax filing platform.

Eligibility for TDS Deduction on Property Purchase

The buyer of an immovable property is responsible for deducting TDS if the total sale consideration exceeds Rs. 50 lakh. This applies to both residential and commercial properties.

Documents Needed for TDS Return on Property Purchase

To file Form 26QB accurately, the buyer typically needs the following documents:

• PAN cards of both the buyer and seller
• Property sale agreement
• Property registration documents
• Payment details (bank statements or challan copies)

Additional Considerations

• Buyers should deduct TDS at the correct rate and deposit it with the ITD within the specified time frame to avoid penalties.
• Keep copies of all relevant documents, including property sale agreements, registration documents, payment details, and TDS challans, for future reference.
• Consult with tax experts if there are any doubts or complexities related to TDS deductions or tax implications of property transactions.

Remember, timely and accurate TDS Return filing for property purchase is essential for maintaining tax compliance and avoiding potential penalties.