It is important to mention TDS connected to real estate transactions while tax filing online to avoid penalties. Indian government has extended the scope of reporting Tax Deducted at Source or TDS to get track of uncounted money involve in real estate transactions. For Indian nationals, the rate of TDS is 1% at the rate of the house been brought. For Non-residential Indians or NRIs, this amount is higher as 30% of the payment made to the seller.
When you file income tax online, use the form 26QB to deposit this amount on behalf of the seller. If not informed than a tax payer can get notice of paying huge amount of penalties such as Rs 1 lakh even. This regulation also includes the instalments you pay for buying a property. In case of instalments, the TDS need to be deducted each time you make one payment. Such TDS need to be deposited with government within 7 days from the date of each installments paid. This account also need to be mentioned while tax filing online.
Such TDS is being paid when you buy a property from a builder but people often ignore the same while buying a property from an individual. People also possess a miss-conception about paying TDS, that it should be paid only if the property is over Rs 50 lakhs. In reality, TDS must be paid and calculated according to the total sale price. This amount is not included in stamp duty that you pay during registration of your property. This is why you must include this account when you file income tax online.
But, if the property has been sold in a lower rate than prescribed circle rate, the TDS need not to be deducted. So, next time when you buy a property make it sure to the seller that you will deduct 1% TDS from the total amount of the property price. And also, remember to mention such instances while tax filing online to avoid getting penalized by the government.
Also Read : Why Reporting Foreign Assets Is Must While Filing Income Tax Return
Such TDS is being paid when you buy a property from a builder but people often ignore the same while buying a property from an individual. People also possess a miss-conception about paying TDS, that it should be paid only if the property is over Rs 50 lakhs. In reality, TDS must be paid and calculated according to the total sale price. This amount is not included in stamp duty that you pay during registration of your property. This is why you must include this account when you file income tax online.
But, if the property has been sold in a lower rate than prescribed circle rate, the TDS need not to be deducted. So, next time when you buy a property make it sure to the seller that you will deduct 1% TDS from the total amount of the property price. And also, remember to mention such instances while tax filing online to avoid getting penalized by the government.
Also Read : Why Reporting Foreign Assets Is Must While Filing Income Tax Return
Comments
Post a Comment