Buying or selling house? Check these TDS compliances in mind

An amendment was made to the Tax Deducted at Source (TDS) provisions on buying a house property in the Budget 2022. Archit Gupta, founder and CEO of Clear (formerly Cleartax), stated that there are some TDS-related compliances that a buyer and seller need to follow. The buyer of a property which is worth more than Rs 50 lakh, must deduct 1 per cent as TDS on the transaction value or stamp duty value, whichever is higher. The transaction value will include all the incidental charges and payments like maintenance fees, gym membership fees, car parking fees, and other charges that the buyer is paying to the seller. The TDS has to be paid through an integrated form 26QB, which is both a statement of TDS and a challan. This tax, which the buyer has to deduct during the time of making payment to the property’s seller, must be deposited within 30 days from the end of the month in which the TDS occurred. The buyer needs to give the TDS certificate generated by him after submission of Form 26QB within 15 days from the due date of filing the form. The PAN of both the buyer and seller of the property, along with other required details, has to be mandatorily submitted in such transactions. It should be kept in mind that if the seller has no PAN or he/she fails to submit the tax return, then a higher TDS will be deducted. If the seller is a Non-Resident Indian (NRI), then the house property limit won’t be checked and a buyer will be required to deduct and pay TDS on the seller’s behalf. A valid Tax Collection Account Number (TAN) card must be possessed by the buyer of such property. According to Amit Kumar Agarwal, CEO and co-founder of NoBroker.com, an NRI seller is also able to apply for a lower tax slab with the help of the TRACES website. He went on to add that if it is not done, then around 20 to 30 per cent of the amount is going to be deducted as TDS by such property’s buyer. Joint buyers are required to deduct TDS as well on their share of payment. They also need to undertake tax compliance measures. Read all the Latest News , Trending News , Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.