What to do?? TDS on immovable property u/s 194 IA :

Effective date	01/06/2013
What to do	Deduct tax @1%
When	While making payment of consideration to seller of property
Which Property	An immovable property the total consideration for which exceeds Rs.50,00,000/- (Rupees Fifty Lakhs)
Exemption	No TDS while dealing in RURAL Agricultural Land
Person Selling prop.	Must be a Resident
Person Purchasing	Can be any person

PROCEDURE TO BE FOLLOWED

Compliance of Rule/ Section	Procedure
Sec 194 IA	At the time of payment (full or part payment) ,or crediting the amount to the account of seller whichever is earlier deduct tax @ 1%
Rule 30 (2A) Rule 30 (6A) Rule 31A (4A)	·         Person purchasing property ·         To pay TDS,  within seven days from ·         The end of the month in which deduction is made ·         By a challan cum statement in form 26QB ·         ELECTRONICALLY
Rule 31 (3A)	·         Person purchasing property ·         To issue TDS certificate (Form 16B) ·         Downloaded from website ·         Within twenty two days from ·         The end of the month in which deduction is made.

Important to note that:

1.       At the time of payment via form 26QB an “E tax confirmation number” is generated, we must take a note of that, it will help us while downloading the TDS certificate form 16B from the website.

2.       Procedure for download of form 16B is not yet notified, it shall be communicated in future mails.

3.       In case the person selling the property does not have a pan, then a higher rate of 20% tax shall be levied.