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Section 194-IA of Income Tax Act 1961 sets a few rules related to buying and selling immovable property such as land, building, and more.
When purchasing an immovable property valued at Rs. 50 Lakh or more, an individual is required to deduct TDS from the amount they pay the seller at the rate of 1% of the consideration or stamp value of the property whichever is higher under Section 194-IA of the Income Tax Act, 1961. Such TDS is required to be deducted at the time of credit of such sum to the account of the transferor /seller or at the time of payment of such sum in cash or by issue of a cheque or draft or by any other mode, whichever is earlier.
Therefore, one can infer that no deduction under this Section is required to be made where the value of the immovable property is less than Rs. 50 lakhs. Also, the Section applies to immovable property other than agricultural land.
TDS so deducted is required to be deposited to the credit of Government within 30 days from the end of month in which the tax deduction has been made by submitting Form 26QB.
Requirements Associated with Form 26QB
Please note that the concerned land will be considered as agricultural if the land is not situated:
Sr. No. |
Distance from Cantonment Board or Municipality |
Population |
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Penalty Charges Associated with Form 26QB
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