TDS on Sale of Property
- According to the Finance Bill of 2013, TDS is levied on the sale of immovable property when the sale consideration exceeds or equals $50,000,000. (Rupees Fifty Lakhs).
- Section 194 IA of the Income Tax Act of 1961 states that beginning June 1, 2013, the purchaser of the property must deduct tax at the rate of 1% when making payment of the sale consideration.
Procedure for paying TDS:
- Visit the NSDL-TIN website (www.tin-nsdl.com)
- Click “TDS on sale of property” and click on the option “Online form for furnishing TDS on property”.
- Select Form 26QB for Payment of TDS on Property Sale.
- Enter all the following information:
- Please save and print the 26QB/Bank Voucher and forward a copy to your designated Builder.