Finance Act 2013 introduced a concept of TDS on Real Estate transactions under Sec 194IA. Under this section, any person who purchases any immovable property (except agricultural land) for a consideration (Rs 50 lakh or more), shall be required to deduct tax at source (TDS) @ 1% of the amount paid to resident seller. The Buyer of the property is required to deduct tax, at the time of credit of consideration to the account of seller or at the time of payment by any mode (cash cheque, demand draft etc.). A simple one pager form (Form 26QB) has been introduced for compliance of this section. BUYER OF THE PROPERTY IS NOT REQUIRED TO OBTAIN TAIN NO. Buyer is required to furnish information in Form 26QB which includes: - Full Name, Address and PAN of buyer and seller - Address of the property - Value of property - Date of agreement / booking - Amount paid / credited, payment in instalments or lump sum - TDS etc. Subsequently, buyer can make the payment online or off...
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