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Who is required to file a TDS return under section 194-IA ?
Any buyer who is responsible for making payment of sales consideration in respect of purchasing an immovable property shall deduct tax under section 194-IA. Tax is required to be deducted only if the seller to whom payment is made is resident in India.
When this section is applicable?
The provisions of section 194-IA are attracted if an immovable property, other than rural agricultural land, is transferred. Tax shall be deducted if the amount of sale consideration or the stamp duty value of the immovable property [Whichever is higher] is Rs. 50 lakhs or more.
If there is more than one transferor or transferee in respect of any immovable property, then the consideration shall be the aggregate of the amounts paid or payable by all the transferees to the transferor or all the transferors for transfer of such immovable property. (w.e.f. 01-10-2024).
How and when to file the TDS return?
To file the TDS return, the deductor has to fill out a challan cum statement in Form 26QB within 30 days from the last day of the month in which the tax has been deducted.
What are the consequences of failure to furnish TDS return?
If a person fails to file the TDS statement within the time then he shall be liable for payment of fee under section 234E at the rate of Rs. 200 per day during which such default continues. However, such fee shall not exceed the amount of TDS. Further, he may also be liable for payment of penalty under section 271H and section 272A .