With a view to prevent undervaluation and under-reporting of transactions in the real estate sector and also to collect tax at the earliest point of time, vide the Finance Act, 2013, a new section 194-IA was inserted with effect from 1 June, 2013 to introduce TDS at the rate of 1% on the value of transfer of immovable property where the consideration is Rs. 50 Lacs or more.
The Central Board of Direct Taxes (‘CBDT’) has issued a Notification No.39 of 2013 dated 31 May 2013 wherein Challan-cum-Statement for payment of TDS, time limit for deposit of TDS, Form for issuance of TDS certificate etc. have been provided.
Buyer of the property has to furnish information regarding the transaction online in Form 26QB on the TIN website. After furnishing of details of the transaction deductor (i.e. Buyer) can either make the payment online immediately or make the payment subsequently through e-tax payment option (net banking account) or by visiting any of the authorized Bank branches.
The Tax deducted by the buyer has to be deposited within a period of 7 days from the end of the month in which deduction is made and shall be accompanied by a challan-cum-statement in Form 26QB
Buyer is required to issue a TDS Certificate in Form No.16B to Seller in respect of the taxes deducted and deposited into the Government Account. TDS Certificate should be issued within 15 days from the due date for furnishing the challan cum statement in Form No. 26QB. Form 16B will be available for download from the website of Centralized Processing Cell of TDS (CPC-TDS) www.tdscpc.gov.in. The Seller can verify deposit of taxes deducted by the buyer in his Form 26AS Annual Tax Statement.
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(Republished With Amendments)