The Finance Bill 2013 has proposed that purchaser of an immovable property worth ₹ 50 Lakhs or more is required to pay Deduct tax at the rate of 1% from the consideration value.
According to rules in respect of tax deducted at source, buyer of the property would have to deduct the TDS and deposit the same in Government treasury.
Buyer ans seller of the property is not required to procure Tax Deduction Account Number (TAN). The Buyer is required quote his PAN and sellers PAN instead of TAN.
PAN of the seller is mandatory. The same may be acquired from the Seller before effecting the transaction. If the seller fails to do so, buyer is required to deduct tax at the rate of 20%, instead of the prescribed 1%.
The online form available on the TIN website for furnishing information regarding TDS on property is termed as Form 26QB
The due date of payment of TDS on transfer of immovable property has been extended to 30 days from the end of the month in which the deduction is made.
Form 16B is the TDS certificate to be issued by the deductor (Buyer of property) to the deductee (Seller of property) in respect of the taxes deducted and deposited into the Government Account.
No but in case you have not deposited TDS by the correct date, the following penalties are applicable: