TDS on Transfer of Immovable Property - PowerPoint Presentation

1. TDS on Transfer of Immovable Property U/s 194-IA of Income Tax Act

2. Applicability2As per Finance Bill of 2013, TDS is applicable on sale of immoveable property wherein the sale consideration of the property exceeds or is equal to Rs 50,00,000 (Rupees Fifty Lakhs)For sale consideration both the values of agreement of sell and agreement to build / development agreement to be considered.Applicable for all transactions / payments w.e.f 1st June 2013, as stated u/s 194 IA of the Income Tax Act. Tax @ 1% should be deducted by the purchaser of the property at the time of making payment of sale consideration.It applicable for more than one Transferee/Buyer or Transferor/Seller.Ozone Group, #38 Ulsoor Road, Bangalore

3. Compliance3Tax is to be deducted either at the time of making payment or crediting of any sum as consideration for transfer of immovable property, whichever is earlier.Sum deducted u/s 194-IA shall be remit to Government within 7 days from end of the month in which the deduction is made.TDS payment U/s. 194-IA shall be accompanied by a challan-cum-statement in Form No.26QB.Deductor is liable to furnish the certificate of the tax deducted at source in Form No. 16B to the deductee within 15 days from the due date of furnishing Form No. 26QB.Ozone Group, #38 Ulsoor Road, Bangalore

4. Pre-requisites for remittance4PAN of the buyer and the seller (for seller PAN finance or CRM team).Address of the immovable property (as mention in the agreement, include unit no.).Address of the buyer and seller (as mention in the agreement).Whether the buyer is single / co-owner(as mention in the agreement).Date of agreement / booking (as per the agreement or booking form).Total value of the property (as mention in the agreements).Total amount being paid now (at the time of payment).Amount of TDS (i.e. 1% of the payment)Ozone Group, #38 Ulsoor Road, Bangalore

5. Key aspects5In case of more than one buyer, all buyers are liable to deduct and remit tax separately.No TDS on adv. maintenance, corpus fund, registration charges, etc.,TDS is applicable even on VAT & Service TaxApplicable for NRI customers also – NRI should obtain PAN at least for TDS purpose, if not obtained already.Credit will be given to customer account on submission of Form 16B.In case of customers availing loan, the onus is on the customers to deduct tax and not on the bank.Ozone Group, #38 Ulsoor Road, Bangalore

6. PAN Card Copy6Ozone Group, #38 Ulsoor Road, Bangalore

7. Tutorial for remittance of TDS issued by departmentOzone Group, #38 Ulsoor Road, Bangalore

8. Select 26QB https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp

9. Step 1 : Select Income tax (Other than companies)Step 2 : Select the financial year of the payment done.Step 3: Customer PAN NumberStep 4: Ozone PAN Number (AAECM5394G)Step 5: Retype Customer PAN NumberStep 6: Retype Ozone PAN Number

10. Step 7: Customer Address with PinCode.Step 8: Ozone Address with PinCode.Step 10: If TDS is paid for two applicants, then this is supposed to be selected as “Yes” else “No”Step 11: Please select “No”

11. Step 12 : Select “Building” Step 13 : Ozone Urbana Project address with Pin CodeStep 14 : The date of booking or Agreement with Ozone Urbana Step 15 : The value of Unit.Step 16 : if the customer willing to pay TDS on total cost, “Lumpsum” to be selected, else “Installements”

12. Step 17: The TDS value on which customer is paying the TDS.Step 18: 1% Step 19: If at all there is any delay in paying the TDS, Interest have to calculated @ 1.5% on total TDS payable on pro rata basis.

13. Step 20: Bank details through which the payment is to be doneStep 20: Bank details through which the payment is to be doneStep 21: Date when the value of TDS has been accounted.Step 22: Once all the above data is furnished properly, Can click on Proceed.

14. Same should be processed and paid by their bank. And the challans have to be downloaded from the bank. Later form 16 have to downloaded and sent to Ozone for reference.