if you have offered a property well worth Rs 50 lakh or more, in keeping with income tax guidelinesyou’re at risk of deduct a tax at supply, or TDS, on the price of one per cent from the price to the seller.
It must be deducted on the sale price of the property. The purchaser has to then deposit this 1 according to cent TDS with the government.
the rule is in region when you consider that June 2013 but only a few are aware about it, say taxprofessionals. This lack of know-how has led to to many human beings getting tax notices, say taxprofessionals. The tax is relevant on all varieties of properties, besides agricultural land.
If the TDS has not been paid, the consumer might be taken into consideration an assesse in default.also, an interest will be levied for the put off in fee.
“hobby could follow on the charge of 1.five consistent with cent in keeping with month if such TDSisn’t deposited with the government treasury on time,” stated Parizad Sirwalla, country wide head of global mobility services, tax, KPMG.
Even if you are buying an under–construction property from a developer, you may have to deduct this tax.
when you have paid the cash to the developer in installments, you’ll should deduct the TDS from everyinstallment. “If sale fee exceeds 50 lakh in aggregate and is payable in instalments, the TDS if so must be deducted from every instalment, irrespective of the size of the instalment,” said Ms Sirwalla.
The tax so deducted needs to be deposited to the tax branch within 30 days from the cease of the monthswherein deduction is made.
you can also make an online price through the tax branch‘s internet site. go to the TCS phase and click on on the option ‘on-line form for furnishing TDS on belongings‘. Fill form 26QB (challan-cum-declaration for payment of TDS) and deposit the tax on-line through net banking.
Or, you may post the form 26QB on line and pay the tax with accepted banks.
If the purchaser fails to post the shape 26QB or has submitted incorrect records, the tax department may also levy penalty among Rs 10,000 to Rs 1 Lakh.
“delay in filing the shape 26QB statement would entail a price–rate of Rs two hundred for every day all through which the failure maintains,” says Ms Parizad.
The buyer also has to offer Form16B (which certifies the deduction of TDS and utilized by seller even assubmitting tax go back) to the vendor inside 15 days of submitting the shape 26QB.
“Failure to problem shape 16B or put off can also lead to penalty of Rs. one hundred in line with day at some stage in which the failure keeps,” says Ms Parizad.
story first posted on: June 28, 2016 thirteen:forty five (IST)
Tags: property shopping for, TDS, Tax deducted at source, form 26QB, shape 16B, home loan,purchase property
