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Posted by Admin on August, 13, 2013
As formed you, the Central Board of Direct Taxes had notified the new provision of Tax Deducted at Source [“TDS”] on immovable property. The amendment is effective from June 1, 2013. With developers, builders, residential societies and associations starting up with the process, this article aims to provide you with procedure that is to be followed to pay the TDS.
The Amendment: Under the Finance Act 2013, the purchaser of an immovable property (any land or apartment or flat or building other than agricultural land) costing Rs. 50 lakhs or more is required to pay a withholding tax. The rate at which the tax is to be deducted is 1% of the amount paid. The new provision has been introduced by adding Section 194IA. The major objective behind the introduction of the new section is to track real estate transactions that are not being registered.
Procedure to follow the Amendment: E-Payment facilitates payment of TDS online. To avail this facility the buyer is required to have a net-banking account. Please follow the following steps to pay tax online:-
Finally please note that in case the buyer paid/remitted any payment on or after June 1, 2013 without deducting the TDS, he/she must separately deposit due TDS by filling up challan-cum-statement Form 26QB immediately and furnish the relevant certificate in Form 16B to the seller.
The Finance Minister has proposed that in order to have a reporting mechanism of transactions in the real estate sector and to collect tax at the earliest point of time, TDS should be applicable. This will widen the tax base and check tax avoidance measures. With the above steps, you can easily make the payment from the comfort of your home/office.
This entry was posted on August, 13, 2013 at 13 : 00 pm and is filed under Buyers Guide to Real Estate. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response from your own site.
Comments [2]
sunder
April, 19, 2015 at 12 : 29 pm
sunder
April, 19, 2015 at 12 : 29 pm
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