A property purchase of over INR 50 Lacs will now attract TDS.

TDS on property purchase of INR 50 Lacs and above.

As per the Finance Act 2013 the buyer of a real estate asset has to deduct tax amounting 1% from the amount paid to the seller of that immovable property.

The confirmation has apparently come from the Central Board of Direct Taxes.

The tax to be deducted would be 1 per cent. However the same could go upto 20 per cent in case the property seller does not show his PAN number.

This TDS procedure would be valid even in cases where the property to be purchased is financed through a home loan. It would be the duty of the purchaser to deduct tax himself or get it deducted through the bank before the actual disbursal of the home loan amount to the property seller.

The tax amount thus cut has to to be then submitted to the Income Tax department through its website by using a relevant form. In case one is unable to pay the same online he has the choice of taking a print of the form and making the payments to any authorised income tax department branch.