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Property Purchase TDS

What to check before buying a property in India?

Few points of consideration are under: Property name: The name of property should be clear from issues and the seller should have the required right to sell it, especially if it is inherited or any joint property.No Dues Certificate: Always check that there will be no outstanding electricity/water bills or any other authority dues pending with the property. Take a no dues certificate from the seller at time of purchase.Bank release letter: It is advisable to take the bank release letter from the concerned bank, if the property had been mortgaged as security in any type of loan.Permits: The property of sale should have all approvals and permits from the civic authorities in terms of construction.

What are the taxes that need to be paid at the time of property purchase?

The buyer needs to pay the following taxes at the time of registering the property:

  • TDS or tax deduction at source on amount exceeding Rs 50 lakhs for the purchase of immovable property excluding agricultural land. The TDS must be submitted in the name of the seller.
  • Stamp duty on registration
  • Service Tax is applicable if the property is being purchased from the builder who conceived and constructed the project before offering possession to the buyer. If a ready-to-use property is purchased from the seller then service tax is not applicable.
  • sale proceeds of shares, securities, immovable property or any other asset held in India
  • Value Added Tax (if applicable in the state)

What are the prevailing rates of different property taxes to be paid?

TDS- 1% on the amount exceeding Rs 50 Lakhs Stamp duty depends on the state and municipal laws Service tax- 12.36% if the property is being developed by a builder/developer as a service for buyers.

How is TDS on property calculated?

In terms of calculating the cost on which TDS needs to be calculated, everything paid to the seller in consideration for property is considered i.e.

  • Basic cost
  • IDC, EDC, PLC
  • Parking
  • Fire-fighting equipment
  • Electrification, wiring expenses etc.Anything paid to the third parties or other authorities are excluded
  • Stamp duty
  • Registration fees
  • Any payments to government authorities
  • Taxes charged by the builderIn case a ready property is being purchased

What is TDS or tax deduction at source on property?

A new section 194 IA has been inserted in the Income-tax Act, 1961 by the Finance Act, 2013. It provides for tax deduction at source on transfer of certain immovable property other than agricultural land of Rs. 50 Lakh or more.As per this new provision, any person, being a transferee responsible for paying to a resident transferor by way of consideration for transfer of immovable property other than agricultural land, shall at the time of credit of such sum to the account of the transferor or at the time of payment of such sum in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, is required to deduct an amount equal to 1 percent of such sum as income-tax thereon specially when the value of the immovable property is Rs. 50 Lakh or more.

What are capital gains on property sale?

The income tax rules define gain in two broad categories; namely short term capital gain (STCG) and long term capital gain (LTCG). Any gains arising by selling a property after holding it for 3 or lesser number of years, is short term capital gain. Any gains arising by selling the property after holding it for more than 3 years comes under long term capital gain.For short term capital gain, the capital gain from asset is added to the investorâ??s income and taxed as per the income tax slab they fall under.For long term capital gain, tax liability is determined based on indexed cost of acquisition and improvement. Indexation is a concept, which factors inflation in its calculation by using a factor called cost inflation index (CII).

HOW IT WORKS

1

SELECT A PACKAGE

  • Select a service that you require
  • Choose a suitable Package or Plan depending on the Work involved the Services required
2

REGISTER

  • Submit or eMail your Contact details or provide the Client Registration Form
  • Provide basic documents (relevant KYC)
  • Make payment (Gateway, NEFT, Cheque, or Cash)
3

DOCUMENTATION

  • Speak to our Advisor
  • Submit your remaining documents / details by any of the following modes:
    • eMail to info@TaxAssist.in
    • Courier to HelpDesk
    • Visit to our Branches
    • or even WhatsApp
4

FINALIZATION

  • Once we have finalised, we will send you the Draft for Approval
  • Once approved & submissions made, you will receive Final Documents from us by eMail, courier or visit.

DOCUMENTS

To initiate the process, we will request you to provide us the following basic documents:
(We donot require any original documents. The documents can either be Emailed, Couriered, Physically delivered to our branches or even Whatsapped to us)

    Resident (Individuals)
  • PAN
  • Passport
  • PIO, OCI (if applicable)
  • Aadhaar Card
    Resident (Corporates)
  • PAN
  • TAN, VAT, GST
  • MOA, AOA
  • Incorporation Certificate
    NRI's & Expats
  • PAN
  • Passport
  • PIO, OCI, CDC (if applicable)
  • Aadhaar Card


Showing 1 to 6 of 6 (1 Pages)

EXPRESS ONLINE (PROPERTY PURCHASE TDS)

Suitable for individuals having an income less than 10 Laks p.a and interest income only where there is an expected  tax refund of less than Rs 10000.Express Online is the perfect package for salaried individuals...

₹2,500.00
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Silver (PROPERTY PURCHASE TDS)

Suitable for individuals having an income of Rs 10-20 Laks p.a and interest income only OR an investment portfolio of less than Rs 20 Laks...

₹5,000.00
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GOLD (PROPERTY PURCHASE TDS)

Suitable for individuals having an income between Rs 10-20 Laks p.a Or an investment portfolio between Rs 20-50 Laks...

₹10,000.00
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DIAMOND (PROPERTY PURCHASE TDS)

Suitable for individuals having an income of more than Rs 20 Laks p.a OR an investment portfolio of more than 50 Laks OR a net worth of more than 3 crores having CG from sale of Real Estate OR planning to relocate to/from India OR having income from ..

₹20,000.00
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PLATINUM (PROPERTY PURCHASE TDS)

Premium personalised services for TDS Advisory, Filing, Certifications & Compliance with personalised attention throughout the transaction...

₹40,000.00
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TITANIUM (PROPERTY PURCHASE TDS)

Suitable for individuals having an income of more than Rs 20 Laks p.a OR an investment portfolio of more than 50 Laks OR a net worth of more than 3 crore OR having CG from sale of Real Estate OR planning to relocate to/from India OR having an income ..

₹80,000.00
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Showing 1 to 6 of 6 (1 Pages)

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