TDS (Tax
Deducted at Source) implications can arise in the context of property
transactions. TDS is applicable when certain specified transactions, such as
the purchase of property, occur.
Below are
some key points related to TDS implications when purchasing property in India:
SECTION
|
NATURE
OF PAYMENT
|
PAYEE
(Seller)
|
PAYER
(Buyer)
|
RATE
|
194-IA
|
Transfer
of Immovable property (other than rural land)
|
Resident
Person
|
Any
person
|
1% of
consideration or SDV, whichever is higher.
|
Additional
points: -
1.
TDS is applicable only if consideration or
SDV is Rs.50,00,000 or more.
2.
Consideration for transfer of immovable property
shall include the following:
·
Club membership fees
·
Car parking fees
·
Electricity facility fees
·
Water Facility fees
·
Maintenance fees
·
Advance fees or any other similar charges incidental
related to transfer
3.
Both the buyer and the seller are required to
have a Permanent Account Number (PAN) in India.
Time limit for
deduction of TDS
I.
At the time of payment, or
II.
At the time of crediting the account of payee,
whichever is earlier.