Is TDS applicable for immovable property?

As per the Finance Act of 2013, TDS is applicable on the transfer of immovable property, wherein the consideration of the property exceeds or is equal to Rs 50 Lakhs.

How is TDS on immovable property calculated?

TDS is required to be deducted @ 1% on the amount payable to the seller of property. If the PAN number of the seller is not available then the TDS is required to be deducted @ 20%. No tax is required to be deducted where the total amount of consideration (selling price of property) is less than Rs. 50 lakhs.

What is the TDS rate for property purchase?

TDS Rate on Property Purchase The TDS rate for property purchase is 1%. Surcharge and secondary and higher education cess (SHEC) need not be added. If the property seller does not have PAN or if PAN is not quoted, then TDS must be deducted at the rate of 20%.

How buyers can deduct TDS u/s 195?

Under Section 195, the TDS can be deposited by the buyer through banks that have been authorised by the Government of India, or the Income Tax Department to collect Direct Taxes. After deposition of the TDS as per Section 195, the buyer has to file TDS return through the electronic medium by submitting Form 27Q.

What is considered immovable property?

If property is immovable, this means that it is firmly fixed to the ground. For example, a home represents immovable property, as it has literally been constructed onto and into the earth below it. When someone purchases a home, part of the immovable property they acquire is also the land that the home is sitting on.

Is 1 TDS on property refundable?

A. Yes, TDS on property is refundable. At the time of sale of property, buyer is required to deduct TDS on property and deposit the same with the government. But, the seller is allowed to avail credit of the same or claim TDS refund by filing his ITR.

Can I get TDS refund?

Tax Deducted at Source (TDS) is the sum that is deducted from a taxpayer’s income like salary, interest from bank accounts, rent etc. If the TDS collected is more than what you owe to the government, you can get a TDS Refund.

How can I pay 1 TDS on my property?

Income Tax Department

  1. Go to TIN NSDL website​ ( ).​
  2. Under ‘TDS on sale of property’, click on “Online form for furnishing TDS on property (Form 26QB)”
  3. Select the applicable challan as “TDS on Sale of Property”.
  4. Fill the complete form as applicable.

Is TAN compulsory for deducting TDS u/s 195?

Is Tan compulsory for deducting TDS u/s 195? The payer needs to obtain a tax deduction account number(TAN) before making the tax payment. This can be done by filing form 49B and is covered under section 203A of the income tax act. It is mandatory to provide the TAN of the deductor for the purpose of tax payment.

What is the TDS for NRO deposits?

Are there any limits at which TDS deduction starts? TDS will be deducted on the interest earned from NRO account @30% plus applicable cess and surcharge. The TDS rate is 31.2% on interest upto Rs 5 million. The entire NRO interest is subject to TDS without any exempted threshold.