TDS on transfer of immovable properties w.e.f 01.06.2013

From June 1st 2013, transfer by a resident of immovable property (other than agricultural land) where consideration exceeds Rs 50 lakhs would attract TDS @ 1% u/s 194 IA. The person is required to deduct tax and would not be required to obtain a Tax Deduction Account Number.

The Central Board of Direct Taxes (CBDT) has come out with an online form for making TDS payment on property transactions.

This form requires mandatory quoting of PAN which is verified with the IT Department’s website. It also asks for address of the transferor and transferee along with the address of the property transaction.

Following details has been asked in the form :
1. PAN details of the Transferee
2. PAN details of transferor
3. Complete address details of Transferee
4. Complete address details of transferor
5. Address of property involved in transaction
6. Amount payable
7. Tax 1 % amount deductible /deducted
The new form is available on TIN-NSDL and field with * sign is only mandatory.

To fill the form online, Click on the link below:
e-payment of TDS on Sale of  Property

21 thoughts on “TDS on transfer of immovable properties w.e.f 01.06.2013

  1. Chinmoy

    I am an NRI but I am having PAN. I am planning to sale a property in kolkata , India. In my case TDS will be 1% or 20%

    Reply
  2. hatim

    What are the implications, if the builder by mistake accepts full cheque payment of flat value without asking the buyer to deduct TDS @ 1%.????
    Is there any penalty?????????

    Reply
  3. Sunil Vadehra

    Problem being faced by returning Indian from overseas. In this nstance, an NRI intending to return to India after decades, finalised purchase of a residential house in India. Having finalised the deal, he returned with family, bag & baggage and purchased the house he intends to reside in. As per provisions, 1% of the sale consideration has been withheld and transferred to CA for payment to Tax authorities. The problem being faced by him is that he does not have a PAN card, which he has already applied for. In the absence of PAN card of buyer (NRI), he is unable to pay TDS deducted online. Please advise what can be done under the circumstances. Please treat this as urgent.

    Reply
    1. TDSMAN Post author

      Dear Sir,

      To the best of our knowledge you can only file the return after having valid PAN. This means after you get the PAN you can file the return.

      Reply
  4. B V RAO

    AS PER 194 IA TDS SHOULD BE DEDUCTED @1%. ARE SAME PROVISIONS APPLICABLE FOR NRI ALSO PREVIOUSELY IT IS 20% TDS RATE ON VALUE. NOW CAN IT BE 1% ONLY THAT TOO IF PROPERTY SALE VALUE IS MORE THAN 50 LAKHS? PLEASE GIVE CLARITY.
    THANK, YOU

    Reply
    1. TDSMAN Post author

      Dear Sir,

      This section is not applicable for non residents as they are already covered in section 195 of income tax act.

      Reply
  5. Babulal J Suthar

    We have bought a property above 50 Lakhs and made the payment in installments say agreement value is 65 Lakh and we have made payment of 50 Lakhs before 31.03.2013 and bal amt 15 Lakhs paid on 15.6.2013 and the date of registration of the property is 25-June-2013. Please let us know whether we should deduct TDS @1% on full value of Rs.65 Lakh or the payment made after 1 June 2013 i.e. on Rs.15 Lakh, Please clarify.

    Reply
    1. TDSMAN Post author

      Dear Sir,

      We haven¢t received the full documentation about this section.

      Please consult this vital issue with your tax consultant or chartered accountant as they are the best person to guide you on this.

      Reply
  6. Sushant

    this TDS processor applicable to builder who build a apartment and sold flats in this case can buyer deduct the TDS and pay as per the processor or not applicable in this case

    Reply
  7. Bharat

    If the Buyer is Individual, in that case also the TDS is applicale? if it is applicable in which challan is to be used for payment TDS to IT Dept.

    Reply
    1. TDSMAN Post author

      Dear Sir,

      We are not sure about this as the document provided by the income tax department has not clearly explained the issue. Kindly consult your Tax consultant for this.

      Reply
  8. Raveendrra Peddi

    194IA is new section its ok

    this TDS is liable to Transferer or Transferee

    please give me clarificaton

    Reply

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