1027 Explain everything about TDS deduction on property sale (section 194 IA)(Live example) <br />Video Link - <br />Case methodology - Harvard case model <br /> <br />Narration - By Amlan Dutta <br /> Madam Krishna decides to buy a property worth 85 lakhs in Dadar ...how does she go about TDS deductions on consideration value <br />Sh has been made aware that the TDS sections specify that she has to deduct 1 % TDS on consideration value under newly introduced section 194 IA <br />But she is bit confused ...so here we go <br /> <br />For all property sale where consideration value exceeds 50 lacs , the buyer will deduct 1 % TDS on consideration value to give that much TDS credit and and remit balance to the seller! <br /> <br />Say i am the seller , then krishna madam will deduct from the consideration value 1 % i./e 85000 as TDS and remit balance 84.154 lacs to me <br />For this deducted TDS , she will fill form 26 QB and once she pays the tax i.e deducts tax at source , she will be presented with a TDS certificate form 16 B ( much like form 16 that you guys know for salary TDS and form 16 A (TDS certificate ) known for non salary TDS! <br />If she fills the form 26 QB properly , then i as seller will get tax credit in terms of deducted TDS and this shall then appear on my form 26 AS tax credit statement ! <br /> <br />At the end of the year , i will be using this tax credit to discharge my tax liabilities towards my total income. <br /> <br />If you learnt anything new , please help share this knowledge with others !
