1% TDS on Property sale

 

TDS (Tax Deducted at Source) is a mechanism used by the Indian government to collect taxes at the source of income. In the context of property transactions, TDS is applicable on the sale of immovable property if the sale price is more than Rs. 50 lakhs. The TDS rate for such transactions is 1% of the sale price.

The buyer of the property is responsible for deducting the TDS and remitting it to the government. The TDS amount must be deposited with the government within 30 days from the end of the month in which the deduction was made.

 It is important to note that the TDS amount should be deducted only from the amount paid or payable to the seller, and not from any other amount such as stamp duty or registration charges. Additionally, if the seller is a resident Indian, the TDS amount can be adjusted against their income tax liability. If the seller is a non-resident, they can claim a refund of the TDS amount by filing an income tax return.

 Failing to deduct and remit the TDS amount can lead to penalties and legal consequences. Therefore, it is essential to comply with the TDS provisions and fulfill the necessary obligations when buying or selling immovable property.