TDS on transfer of immovable property

Dear Sir,

You need to deposit the TDS with interest without any delay.

Please feel free to call/ revert in case of any doubts

Thanks and Regards

Abhishek Dugar

CA CS B.Com

If you want I will give you checklist. And you have to pay interest

The TDS can be made online through filling form 26QB and following steps there after. The section is applicable only when a payment is made by any person to a resident. Thus in case the NRI purchases property from a resident in India, the new rule of TDS @1 % will be applicable.

The PAN numbers of Both the parties to the sale deed i.e. buyer and seller is required . Address of the Property purchased, consideration as mentioned in Sale Deed and date of purchase are required for filling form 26QB.

Dont calculate the interest and late fee. Pay actual now and you will get a letter mentioning the interest and fee payable and then you can pay.

Hi,

First Check whether the Seller from whom you have purchased the Property has filed his Income Tax Returns showing the Capital Gains from the Sale of Property and paid all necessary taxes to the Govt.

If yes, then kindly ask him to provide CA Certificate in Form 26A as per First Proviso to Section 201 (1). This will absolve you of the responsibility to deduct TDS as you will not be treated as Assessee in default.

Pl check first if there is any tds default reported in the compliance section of the efiling portal. If it is there you can respond to that.

Under proviso to Section 201, you will not be treated as an assessee in default, if your seller

a) filed his IT return

b) included the income in his return

c) paid tax on such income

d) furnished a certificate from a CA

You may keep them ready with you and submit them if any penalty proceedings are initiated by the Assessing Officer.

The PAN numbers of Both the parties to the sale deed i.e. buyer and seller is required . Address of the Property purchased, consideration as mentioned in Sale Deed and date of purchase are required for filling form 26QB.

However, just check whether your seller has filed return on time and paid capital gain taxes on the property. If yes, then you can simply take a CA certificate from your seller and you will not be considered as Assessee in default

Please feel free to call/ revert in case of any doubts

Thanks and Regards

Abhishek Dugar

CA CS B.Com