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Section194-IA of Income Tax Act - TDS on transfer of immovable property. www.prestigeconstructions.com. Index. APPLICABILITY. COMPLIANCE. PREREQUISITE FOR REMITTANCE. KEY ASPECTS. Applicability.
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Section194-IA of Income Tax Act -TDS on transfer of immovable property www.prestigeconstructions.com
Index APPLICABILITY COMPLIANCE PREREQUISITE FOR REMITTANCE KEY ASPECTS
Applicability • Applicable on sale of immovable property wherein the sale consideration exceeds Rs. 50 lakhs (value of agreement to sell and construction agreement put together) • Applicable for all payments / transactions w.e.f 01/06/2013 • Applicable for all ongoing and new projects wherein the sale consideration exceeds Rs. 50 lakhs but only for payments made on or after 01/06/2013. • Purchaser to deduct 1.133%*/1.03 % (as the case may be) on all payments made towards purchase of immovable properties • *applicable if purchaser is paying morethan Rs.1 Crore in a financial year Shot at location - Prestige Neptune’s Courtyard - Cochin
Compliance • To be deducted at the time of making the payment • To remit the deduction online by Challan 26QB within 7 days from the end of the month in which deduction has been made (copy attached) • To furnish TDS certificate to the seller in Form 16B within 15 days from the due date of deposit (copy attached) Shot at location - Prestige Neptune’s Courtyard - Cochin
Pre-requisites for remittance • PAN of the buyer and the seller (seller PAN will be provided by finance team to CRM team) • Address of the immovable property (as per the agreement, include unit number also) • Address of the buyer and seller (as per the agreement) • Whether the buyer is single / co-owner( as per the agreement) • Date of agreement / booking (as per the agreement or booking form) Shot at location - Prestige Neptune’s Courtyard - Cochin
Pre-requisites for remittance (contd….) • Total value of the property (as per the agreements) • Total amount being paid now • Amount of TDS Shot at location - Prestige Neptune’s Courtyard - Cochin
Key aspects • In case of co- owners, all owners are obligated to deduct and remit tax separately • No TDS on adv. maintenance, sinking fund, registration charges • TDS is applicable even on VAT & Service Tax • Applicable for NRI customers also – NRI should obtain PAN at least for TDS purpose, if not obtained already • Credit will be given to customer account on submission of Form 16B Shot at location - Prestige Neptune’s Courtyard - Cochin
Key aspects – contd….. • In case of customers availing loan, the onus is on the customers to deduct tax and not on the bank • Tutorial for remittance of TDS issued by department (Attached) Shot at location - Prestige Neptune’s Courtyard - Cochin
In case of any queries/concerns, please write to us @ tds@prestigeconstructions.com or call us on 080 – 25001167/248 www.prestigeconstructions.com