1% TDS rule was supposed to come into effect from June 1. Does anyone has any idea about it ?
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  • 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.......
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  • Originally Posted by rakesh311
    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.
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  • Ignorance of law is no excuse..........
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  • 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 !!
    CommentQuote
  • A good News for realty! Re-read dear

    Originally Posted by rakesh311
    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 :bab (45):. 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.
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  • Originally Posted by HMM1978
    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.
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