As per newly inserted Section 194IA of Income Tax Act w.e.f. 01st June 2013,
Every buyer of Immovable Property, where Sales Consideration is equal to or more than Rs.50,00,000/- (Rs. Fifty Lakhs) shall be liable to deduct TDS @ 1% of amount payable/paid to Seller of Immovable Property on or after 01st June 2013. The same shall be deposited as per manner given below.
Note:- Sales Consideration means Total Cost of Flat but excluding IFMS and Service Tax amount.
Steps for Deduction & Payment of TDS:-
• Deduct TDS @ 1% on Sales Consideration (i.e. Demand Amount excluding IFMS & Service Tax).
• Pay TDS to any Authorized Bank within 7 days from the end of the month in which TDS deducted with challan-cum-statement Form No.-26QB.
• Furnish the Certificate of deduction of Tax in Form No.16B to the seller within Fifteen days from the due date for payment of TDS.