Govt revised timeline to Deposit TDS on Property
Section 194IA requires buyer of the Property to deduct 1% TDS while making payment to seller if consideration of the Property exceeds 50 Lakh Rupees. Such TDS was required to be paid within 7 days from the end of the month in which payment been made but now CBDT has extended such 7 day period to 30 days from the end of month in which TDS on property is Deducted for all payments to be made on or after 01st June 2016.
For Example if buyers has made the payment on 01.06.2016 to seller of Rs 300000 . then he is required to deposit the TDS @ 1% on Rs 300000 i.e Rs 3000 on or before 30.07.2016 ( 30 days from the end of the month i.e june 2016)
Existing sub Rule 30 (2A) of Income Tax rule
( Inserted by the IT (Fifth Amdt.) Rules, 2013, w.e.f. 31-5-2013.)
[ Notwithstanding anything contained in sub-rule (1) or sub-rule (2), any sum deducted under section 194-IA shall be paid to the credit of the Central Government within a period of seven days from the end of the month in which the deduction is made and shall be accompanied by a challan-cum-statement in Form No. 26QB.
Revised Sub Rule 30 (2A) w.e.f 01.06.2016
[Notification No.30/2016, F.No.142/29/2015-TPL Dated 29.04.2016]
Notwithstanding anything contained in sub-rule (1) or sub-rule (2), any sum deducted under section 194-IA shall be paid to the credit of the Central Government within a period of Thirty days from the end of the month in which the deduction is made and shall be accompanied by a challan-cum-statement in Form No. 26QB.
Also Read :
- TDS on Purchase of Property : FAQ’s
- Online Correction Facility for 26QB enabled (TDS on sale of property)
- 26QB online correction enabled by CPC TDS