Investment Valuation in India

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...

As per Finance Act 2013, any person being a transferee responsible for paying to a resident transferor any sum by way of consideration for transfer of any immovable property other than  a) agricultural land or b) where consideration for such transfer is less than Rs 50,00,000 (Rupees Fifty Lakhs) shall deduct tax @ 1% Implications: 1. "Any person" implies even individuals or HUF whi are not covered under Sec 44AB for TDS deduction have a liability to deduct TDS. 2. In case the PAN is not quoted by seller, TDS to be deducted is 20% 3. TDS has to be deducted on the date of credit (e.g. transfer entry) or date of payment whichever is earlier 4. The tax deductor is not required to obtain TAN Number since these are considered to be rare / one time transactions.

Accountants' Adda | Deduction at a lower rate or non-deduction of tax in case of salaries As per Section 192 of the Income Tax Act, an employer is required to deduct tax at source on the amount payable to the employee at the average rate of income tax. Unlike other payments, in case of salary, TDS is deducted only at the time of PAYMENT of salary.  This is to be computed on the basis of rates in force for the financial year in which payment is made. Section 197 enables a tax payer to make an application to his Assessing Officer for deduction of tax at a lower rate or non deduction of tax. The application has to be made in   Form No.13  (vide Rule 28(1)).    If the Assessing Officer is satisfied that the total income of a tax payer justifies the deduction of income tax at any lower rate or no deduction of income tax, he may issue a certificate in   Form No. 15AA   (relevant Rule 28AA) providing for deduc...