TDS on immovable property

(Starting 1 June 2013, the…)

1. Starting 1 June 2013, the 1% tax deducted at source (TDS) has been applicable on the value of transfer of immovable property worth Rs 50 lakh and above.

2. The immovable property includes assets such as a house, commercial property and land purchased for commercial or residential purposes.

3. It is the responsibility of the property buyer to deduct theTDS and deposit it with the government. However, he need not procure the Tax Deduction Account Number (TAN), which is used in other TDS payments.

4. The permanent account numbers (PAN) of both, the buyer as well as the seller, are required. In case the valid PAN of the seller is not available, the tax deduction will be at a higher rate of 20%.

5. The buyer needs to generate the TDS certificate (Form 16B) from www. tdscpc.gov.in and provide it to the seller within 15 days of the deposit.