Any person responsible for paying any sum to a resident transferor by way of consideration for transfer of an immovable property (i.e. building or part of building or any land other than agricultural land) is liable to deduct tax at source u/s 194-IA.
In simple words, as per this section the buyer has to pay TDS and not the seller.
Time of deduction
At the time of payment or credit to the transferor in the books of transferee, whichever is earlier.
In case of PAN of Deductee is available -1%
In case of NO PAN of Deductee is available -20%
TDS under section 194IA is to be deposited on CHALLAN cum Statement on Form 26QB.
TDS certificate must be issued to deductee (buyer) in Form 16B within 15 days from due date of deposit.
No TDS is to be deducted when consideration is less than Rs 50, 00,000.
Provision of TAN not applicable.
No TDS Return:
Interest & Penalties
Interest is payable at the rate of 1% for every month of late deduction of tax
Interest is payable at the rate of 1.5% for every month of late payment of tax deducted.