AIS – Receipts from transfer of immovable property

Annual Information Statement (AIS) – Receipts from transfer of immovable property

AIS is the abbreviation form of ‘Annual Information Statement’ which is recently rolled out by the Income Tax Department. Along with ‘Annual Information Statement’, the department also came up with the ‘Taxpayers Information Summary’ i.e., TIS.

Notably, if the information reflected in the ‘Annual Information Statement’ is incorrect, the taxpayer is facilitated to submit online as well as offline feedback. Real time updation will be automatically done under ‘Taxpayers Information Summary’ as and when ‘Annual Information Statement’ is updated on the basis of feedback filed by the taxpayer.

Accordingly, it is important to understand various information categories covered under the ‘Annual Information Statement’. One such category is ‘Receipts from transfer of immovable property’ which is taken up and explained in the present article.

Transfer of immovable property vis-à-vis TDS provisions-

As we know, the transfer of immovable property is taxable under Income Tax Act. Accordingly, as per section 194-IA of the Income Tax Act, the buyer of the immovable property is liable to deduct TDS. TDS provisions covered under section 194-IA are briefly explained hereunder-

1. Conditions when TDS provisions get applicable-

a. The buyer is purchasing an immovable property from a resident seller;

b. Consideration is above INR 50 Lakhs;

c. Immovable property transferred is any land (other than agricultural land); or building etc.

2. The deductor/ buyer is liable to deduct TDS earlier of the time of credit or time of payment in cash/ cheque/ draft/ any other mode.

3. TDS is deductible @ 1%.

4. The sum so deducted by the buyer is to be deposited to the Government within a period of 30 days from the end of the month in which deduction u/s 194-IA is made. TDS amount is to be deposited via challan-cum-statement in Form No. 26QB.

5. The deductor/ buyer is also required to issue a TDS certificate in Form No. 16B to the seller.

‘Annual Information Statement’ source and processing of information category ‘Receipts from transfer of immovable property-

Information under the category ‘Receipts from transfer of immovable property’ will be taken, under ‘Annual Information Statement’ from Form No. 26QB filed by the buyer of the property. Majorly, sale consideration as per Form No. 26QB will be displayed.

‘Annual Information Statement’ will process the information received from Form No. 26QB. However, the tax treatment of the same will vary from person to person.