All you know about TDS on purchase of property

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Wasim Mohammad, Pune

22nd July 2015

Investment Advice in Pune

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Replies (8)

TDS on purchase of Property above 50 lakhs has become effective. If I hold my property in joint names (Equal contribution for Purchase) Agreement is likely to be of 67 lakhs. will both of us comply with this regulation?

Rithwik D, Pune

17th December 2015

Comment

TDS on the purchase of Property lies with the first holder in full if it is a single agreement. If there are two separate agreements then both will have to comply with TDS.

Rishi Dev,

17th December 2015

Thanks Rishi, I have purchased a plot of land from Government agency in open auction for Rupees 80 Lacs. Do I have to deduct 1% from purchase(auction) amount? It is exactly like purchasing property in normal case?

Rithwik D, Pune

17th December 2015

Hi, I think TDS is not applicable to Government agency. In your case you don't need to deduct 1% from your total amount to be paid.

Rishi Dev,

17th December 2015

Thanks, How to calculate the tax amount? Do you need to apply for Tax Deduction Account Number to pay the TDS?

Priyanka Vats, Pune

24th July 2015

Comment

Let us take example, If the amount of property you have purchased is Rs 60 lakhs, then you don’t have to pay tax only on Rs 10 lakhs but on the entire amount of sale consideration i.e. Rs 60 lakhs. No, Buyer of the property are exempt to procure TAN which otherwise is mandatory in all cases wherever a person deducts tax.

Sunil Kulkarni, Pune

24th July 2015

Comment

As per the rules, the buyer of the property is required to deduct Tax TDS and deposit the same with the Government.The rate at which the buyer needs to deduct tax is 1% and it may go up to as high as 20% if the seller does not disclose his PAN. This rule also covers the property purchased through home loan.

Sunil Kulkarni, Pune

23rd July 2015

Comment

Who needs to deduct this tax? What is the rate at which tax needs to be cut?

Priyanka Vats, Pune

23rd July 2015

Comment

Hi all. as per my knowledge the sum deducted as TDS has to be paid to the central government within a period of seven days from the end of the month in which the deduction was made. It has to be accompanied by a challancum-statement on Form 26QB as per update rule.

Nitesh Patil, Pune

22nd July 2015

Comment

Hi Nitesh, Can you clear me one think, that what is the limitation of TDS , exceeding 50 lakh is overall cost or only basic cost should be taken in this regards.

Nitesh Patil, Pune

22nd July 2015

The limit of Rs 50 lakhs is only the sale amount and any charges towards delay etc., need not be taken into account. All payments towards development charges, parking space, sewerage charges etc., should be considered for the purpose of the limit. Charges such as club membership, if the club is attached to the ownership of the property, should also be considered for the limit of Rs 50 lakhs.

Nitesh Patil, Pune

22nd July 2015

Hi Pravakar, I have 2000 sq ft plots project and project come under agriculture land should I avail this benefit?

Sneha Ambedkar, Pune

22nd July 2015

Comment

Hi Sneha, As per rule agricultural land is exempt from this tax. Also, no deduction is to be made where the sale amount is less than Rs 50 lakhs.

Pravakar Saxena, Pune

22nd July 2015

Thanks Pravaka for the quick response. . really appreciate...

Sneha Ambedkar, Pune

22nd July 2015

Hi , Purchasing property is one of the biggest achievement of every person in life and it is good that you should know each and every aspect related to property and under certain circumstances, a buyer has to deduct tax and remit it to the government.

Rohit Marathi, Pune

22nd July 2015

Comment

Thank you for your valuable inputs but I would like to add few more points that in order to facilitate better reporting of property transactions and payment of capital gains tax, the government introduced a Tax to be deducted at Source at the rate of 1% on the value of the transfer of the property where the sale amount exceeds Rs 50 lakhs.

Pravakar Saxena, Pune

22nd July 2015