1. Person responsible for tax deduction:- Any person responsible for paying any sum to a resident transferor by way of consideration for transfer of an immovable property (other than agricultural land in rural area) is liable to deduct tax at source u/s 194-IA. 2. Time of deduction:- At the time of payment or credit, whichever is earlier 3. Rate of TDS:- TDS to be deducted @ 1% of the sum paid. However, TDS needs to be deducted @ 20%, if the deductee does not furnish PAN. 4. Threshold Limit:- No tax is deductible where the consideration paid or payable for the transfer of an immovable property is less than Rs. 50,00,000/-. 5. Other points:- o Provisions of TAN as prescribed u/s 203A shall not apply in respect of tax deducted u/s 194-IA. o Immovable property means any land, building or part of building. Such property may be situated in India or outside India. o TDS provisions of section 194-IA shall apply only if the transferor is resident in India. o TDS provisions of section 194-IA shall not apply if a person acquires rural agricultural land in India. 6. Online Payment of TDS through challan cum statement on Form 26QB through NSDL Website:- Tax so deducted should be deposited to the Government Account through any of the authorized bank branches using the e-Tax payment option available at NSDL E-payment within a period of seven days from the end of the month in which the deduction is made and shall be accompanied by a challan-cum-statement in Form No. 26QB.
Posted on: Sat, 04 Oct 2014 09:58:56 +0000
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