With effect from 1st June, 2013, a purchaser of an
immovable property (other than agricultural land) worth over Rs. 50 lakhs is
required to pay TDS @1% from the total consideration payable to a resident
transferor.
The rate of TDS will be 20% in case of non availability of PAN
as there is a statutory requirement under section 139A of the
Income-tax Act (read with rule 114B of the Income-tax Rules, 1962) to quote
Permanent Account Number (PAN) in documents pertaining to purchase or
sale of immovable property for value of Rs. 5 lakhs or more. 
TDS on consideration paid to
transferor of an immovable property will fall under a newly inserted section
194-IA of the Income Tax Act, 1961.
It is provided that a simple one
page challan for payment of TDS would be provided
containing the following details:
- Permanent Account No. (PAN)
of Transferee(Payer/Buyer)
- Permanent Account No. (PAN)
of Transferor (Payee/Seller)
- Category of PAN of
Transferee
- Category of PAN of
Transferor
- Full Name of the Transferee
- Full Name of the Transferor
- Complete
Address of the Transferee
- Complete
Address of the Transferor
- Complete Address of the
Property Transferred
- Details of amount paid/Credited
- Tax Deposit Details
The transferee would not be required
to obtain any Tax Deduction and Collection Account
Number (TAN) or to furnish any TDS statement as this would be mostly a
one-time transaction. The transferor would get credit of TDS like any
other pre-paid taxes on the basis of information furnished by the transferee in
the TDS challan.
