194IA TDS COMPLIANCE FOR PROPERTY SALES
TDS COMPLIANCE FOR PROPERTY SALES IN KARAWAL NAGAR, LONI, AND YAMUNA VIHAR: KEY ASPECTS UNDER SECTION 194-IA OF THE INCOME-TAX ACT, 1961
1. TDS Deduction Rate & Calculation
- TDS Rate: 1% of the total sale consideration (if PAN of the seller is available and valid).
- TDS Amount: (1% of ) 80,00,000 = 80,000
- If PAN of the Seller is Not Available: The TDS rate will be 20%.
2. Payment and Filing of Form 26QB
- Due Date for TDS Payment: TDS must be deposited to the government within 30 days from the end of the month in which the payment is made.
- Filing Form 26QB: The buyer must file Form 26QB online at the TIN-NSDL or TRACES portal.
3. Issuance of TDS Certificate (Form 16B)
- Form 16B Generation: After depositing TDS via Form 26QB, the buyer must generate Form 16B (TDS Certificate) from TRACES.
- Due Date for Form 16B: The buyer must issue Form 16B to the seller within 15 days from the due date of filing Form 26QB.
4. Compliance Checklist
- PAN of Buyer & Seller: Ensure PANs are valid and correctly mentioned in Form 26QB.
- Correct Details in Form 26QB: Property details, payment details, and consideration value should match the sale agreement.
- Timely TDS Payment: Deposit TDS within the due date to avoid interest and penalty.
- Download & Issue Form 16B: Provide the TDS certificate to the seller on time.
5. Interest & Penalty for Non-Compliance
- Late Deduction of TDS: 1% per month from the due date until the actual deduction.
- Late Payment of TDS: 1.5% per month from the deduction date till the date of payment.
- Late Filing of Form 26QB: ₹200 per day until the filing is completed (maximum amount equal to TDS deducted).
- Failure to File Form 26QB: Penalty ranging from ₹10,000 to ₹1,00,000 under Section 271H.