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1% TDS Rules

Last updated: July 6 2013
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  • 1% TDS Rules

    1% TDS rule was supposed to come into effect from June 1. Does anyone has any idea about it ?
  • #2

    #2

    Re : 1% TDS Rules

    Yes...its very much into effect now........

    No PAN, no gain: Property sellers face 20% tax hit - The Times of India

    Here's another good news(...lol!) which is effective from 01 April 2014....

    Budget aims at plugging tax leakages in property deals | Business Standard

    enjoy.......
    Good luck

    Comment

    • #3

      #3

      Re : 1% TDS Rules

      Originally posted by rakesh311 View Post
      Yes...its very much into effect now........

      No PAN, no gain: Property sellers face 20% tax hit - The Times of India

      Here's another good news(...lol!) which is effective from 01 April 2014....

      Budget aims at plugging tax leakages in property deals | Business Standard

      enjoy.......
      There are several articles in the media but people at the grounds are unaware how to implement.

      Comment

      • #4

        #4

        Re : 1% TDS Rules

        Ignorance of law is no excuse..........
        Good luck

        Comment

        • #5

          #5

          Re : 1% TDS Rules

          In case of a resale transaction with loan from bank, how does it work? For example: if agreement value is 70 L, and following is payment breakup:

          40 L from Bank
          30 L Cheque

          Now, as buyer i will deduct 70K from 30 L, and submit as 1% TDS on seller's PAN. As per my knowledge, bank will need to see seller's statement to make sure all the funds are transferred. Now will they consider payment of 29,30,000 L + TDS receipt for disbursement? If no, what will be the altenerate method?

          Also, do we get any receipt as soon as we make e-payment for TDS online which can work as a proof for bank?

          If anyone has gone through this exercise, and dont mind having an offline conversation that would really help. Thanks again !!

          Comment

          • #6

            #6

            Re : 1% TDS Rules

            A good News for realty! Re-read dear

            Originally posted by rakesh311 View Post
            Yes...its very much into effect now........

            No PAN, no gain: Property sellers face 20% tax hit - The Times of India

            Here's another good news(...lol!) which is effective from 01 April 2014....

            Budget aims at plugging tax leakages in property deals | Business Standard

            enjoy.......
            Hi Rakesh,

            There is no way there is a good news for those in realty . Please re-read the last line of the article in business standard. It is assessment year 14-15, that means Financial Year 13-14. That is current financial year. I presume effective 1st April 14 denotes assessment year and not financial year.

            Comment

            • #7

              #7

              Re : 1% TDS Rules

              Originally posted by HMM1978 View Post
              In case of a resale transaction with loan from bank, how does it work? For example: if agreement value is 70 L, and following is payment breakup:

              40 L from Bank
              30 L Cheque

              Now, as buyer i will deduct 70K from 30 L, and submit as 1% TDS on seller's PAN. As per my knowledge, bank will need to see seller's statement to make sure all the funds are transferred. Now will they consider payment of 29,30,000 L + TDS receipt for disbursement? If no, what will be the altenerate method?

              Also, do we get any receipt as soon as we make e-payment for TDS online which can work as a proof for bank?

              If anyone has gone through this exercise, and dont mind having an offline conversation that would really help. Thanks again !!
              HMM1978,

              You have to deduct TDS 1% on the consideration amount of 70 lacs. Pay TDS to Central Government either from the same bank account or give a copy of the other account too to the bank for verification of payment made towards TDS deducted.

              Yes, you will fill Form 26QB which is also a challan. This will have payment authentication if you pay online or will be stamped by the bank where you make the payment.
              Last edited July 6 2013, 04:04 PM.

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