TDS on Sale of Property

Whether you are a buyer or a seller, understanding TDS obligations can help ensure a smooth and compliant transaction.

  • Guidance on TDS Compliance
  • TDS Deduction and Payment
  • Form 26QB Filing
  • TDS Certificate Issuance
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Welcome to your comprehensive guide on Tax Deducted at Source (TDS) for the sale of property in India. Whether you are a buyer or a seller, understanding TDS obligations can help ensure a smooth and compliant transaction. Our services are designed to assist you at every step, ensuring you fulfill all legal requirements with ease.

What is TDS on Property Sale?

TDS, or Tax Deducted at Source, is a tax mechanism where the buyer of an immovable property (other than agricultural land) is required to deduct a specified percentage of the sale consideration as tax and remit it to the government. This ensures that the seller's income from the property sale is taxed at the source.

When is TDS applicable?

According to Section 194-I of the Income Tax Act, 1961, TDS is applicable when the sale consideration of the property exceeds ₹50 lakhs. The buyer must deduct 1% of the total sale amount as TDS. For properties sold by Non-Resident Indians (NRIs), the TDS rate varies and may be higher @30%.

tds on sale of property

Our Services

Guidance on TDS Compliance
  • Eligibility Check: Determine if TDS is applicable to your property transaction.
  • Calculation Assistance: Accurately calculate the TDS amount based on the sale consideration.

TDS Deduction and Payment
  • TDS Deduction Process: Step-by-step guidance on how to deduct TDS during the property sale.
  • Online Payment Support: Assistance with making TDS payments online using the appropriate forms and portals.
Form 26QB Filing
  • Form Preparation: Help with filling out Form 26QB, the form required for TDS on property transactions.
  • Submission Assistance: Ensure timely and accurate submission of Form 26QB to avoid penalties.
TDS Certificate (Form 16B) Issuance
  • Certificate Generation:Assist in generating and issuing Form 16B, the TDS certificate to be provided to the seller.
  • Compliance Confirmation:Verify that the TDS certificate complies with all legal requirements.
NRI Transactions
  • Higher TDS Rate Compliance:Guidance on applicable TDS rates for NRIs.
  • Tax Treaty Benefits:Assistance in availing benefits under Double Taxation Avoidance Agreements (DTAA), if applicable.


Resolution of TDS Discrepancies
  • Error Rectification:Help in rectifying any errors or mismatches in TDS payments or filings.
  • Refund Assistance:Support in claiming TDS refunds in case of excess deduction.


Expert Consultation:
  • Personalized Advice:One-on-one consultations with our tax experts for tailored advice and solutions.
  • Legal Support:Access to legal expertise for any disputes or issues arising from TDS compliance.

Why Choose Us?

Expertise

Our team consists of seasoned professionals with extensive knowledge of Indian tax laws.

Accuracy

We ensure all calculations and filings are precise and error-free.


Convenience

Our streamlined process makes compliance hassle-free for both buyers and sellers.

Support

Continuous support throughout the transaction process and beyond.

FAQs on TDS on Sale of Property in India

TDS on the sale of property is a tax deducted at source by the buyer when purchasing immovable property (excluding agricultural land) in India. According to Section 194-IA of the Income Tax Act, the buyer must deduct 1% of the sale consideration if the transaction value exceeds ₹50 lakhs and remit it to the government.

Under Section 194-IA of the Income Tax Act, the buyer of the property is responsible for deducting TDS. The deducted amount must be deposited with the government and Form 26QB must be filed.

TDS is applicable on the purchase of immovable property except for agricultural land, as specified in Section 194-IA of the Income Tax Act. This includes residential, commercial, and industrial properties.

Form 26QB is a challan-cum-statement form that needs to be filled out and submitted by the buyer to report the TDS deducted on the sale of property. It must be filed within 30 days from the end of the month in which TDS was deducted.

TDS can be paid online through the NSDL website using Form 26QB. The buyer needs to provide details of the property, buyer, seller, and the amount paid.

Form 16B is a TDS certificate issued by the buyer to the seller after the TDS amount has been deposited with the government. The buyer can download Form 16B from the TRACES website.

Failure to deduct or deposit TDS on time can result in interest and penalty charges under Section 201 of the Income Tax Act. The buyer may be liable to pay interest on the amount not deducted or deposited and face penalties for non-compliance.

Yes, the TDS rate for NRIs selling property in India is higher and varies based on the type of property and the duration of holding, as per Section 195 of the Income Tax Act. Typically, it ranges from 20% to 30%.

Yes, the seller can claim a refund of the excess TDS deducted if their total tax liability is less than the TDS amount. This can be done by filing an income tax return as per Section 237 of the Income Tax Act.

NRIs can benefit from lower TDS rates or exemptions under the DTAA between India and their country of residence. They need to submit a Tax Residency Certificate (TRC) to avail of these benefits, as outlined in Section 90 of the Income Tax Act.

Key documents include the sale deed, PAN cards of both buyer and seller, Form 26QB, proof of TDS payment, and Form 16B. Proper documentation ensures smooth compliance and avoids legal issues.

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