TDS on Sale of Property 194IA – Due date extended

June 4, 2016

Due date for filing the statement for Tax Deduction at Source (TDS) on Sale of Property under section 194IA has been extended to 30 days from the end of the month in which tax was deducted.  Earlier, the tax deducted was to be paid within 7 days from the end of the month.

CBDT in its notification dated 31st May 2016 had made the changes in Rule 29B and in 31A sub-rule (4A) by substituting the words ‘seven days’ to ‘thirty days’.

Earlier in the month of April, CBDT had announced changes in the Challan Payment date for TDS on Sale of Property, from 7 days to 30 days wide Notification No. 30/2016 dated 29th April, though nothing was specified about the due date for filing return. The fresh notification clarifies on the same.

Sec 194IA deals with TDS on the sale of immovable property. Under this section, TDS is to be deducted @1% at the time of credit of such sum to the account of the transferor or at the time of payment of such sum whichever is earlier on the sale of immovable property.

The transferor or the seller contemplated in this section should be a resident of India. Therefore, this section only deals with the sale of property by residents and TDS @1% is to be deducted on such sale by resident seller provided the consideration for the sale of property, exceeds Rs. 50 lacs.

Tax will be deducted at the time of making payment of installment or the whole of purchase consideration as the case may be. If any advance payment is done for the purchase of property, tax should be deducted at the time of advance payment.

 Related topics: Latest TDS amendments, Steps for e-filing of TDS in ITD portal

Click here to read the notification given by CBDT.

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