Let me answer your query: Is TAN required for TDS on property? No, individual or HUF buyers purchasing property are not required to obtain a Tax Deduction and Collection Account Number (TAN) when deducting TDS on property transactions under Section 194-IA.
TDS @ 1% must be deducted if the property value exceeds Rs. 50 lakhs (including stamp duty/registration charges). Individual/HUF buyers can use their Permanent Account Number (PAN) instead of TAN for depositing TDS.
TDS payment must be made within 30 days from the month of deduction via:
Form 26QB (online payment on TIN-NSDL portal).
Challan No./ITNS 280 under "194-IA" category.
Only companies, firms, or non-individual buyers need TAN for property TDS deduction.
Deduct 1% TDS from the payment to the seller. Submit Form 26QB online (requires buyer/seller PAN, property details). Generate Challan 280 and pay TDS via net banking. Issue Form 16B (TDS certificate) to the seller within 15 days.
Late payment attracts interest 1.5% per month and failure to deduct TDS may lead to disallowance of property expenses (for business buyers).
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Hey Friend,
Tax Deduction and Collection Account Identifier, or TAN, is a ten-digit alphanumeric number that must be obtained by anyone in charge of withholding or collecting tax at the source. Often people wonder, is tan required for TDS on property? It is imperative for them to know that TAN must be referenced in all required papers, including TDS/TCS returns (including any e-TDS/TCS returns), TDS/TCS payment challans, TDS/TCS certificates, Annual Information Returns, and other documents that may be deemed necessary.
Avail NoBroker’s Legal Services to verify the property documents Why is it necessary to have TAN no for TDS on property sale?Every person that withholds or collects tax at source is required to apply for the allocation of a TAN under section 203A of the Income-tax Act of 1961. Additionally, TDS/TCS returns (including any electronic TDS/TCS returns), TDS/TCS payment challans, TDS/TCS certificates, and other papers as may be prescribed must all contain the TAN. According to section 272BB, there is a Rs. 10,000 fine for failing to apply for a TAN number for TDS on property or failing to include the TAN in the required paperwork.
Is TAN necessary for TDS on NRI-owned property?In accordance with Section 195 of the Income-tax Act of 1961 (ITA), you must deduct tax (TDS) if you buy a property from a Non-Resident Indian (NRI). You must legally obtain a Tax Deduction and Collection Account Number (TAN No.) if you are purchasing real estate from an NRI in order to deduct TDS.
I hope this answer suffices your query, Is TAN required for TDS on property? I hope this helps:)
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Is TAN Required For TDS On Property?
Tanisha
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2022-11-21T20:41:07+00:00 2022-11-21T20:41:09+00:00Comment
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