• TDS deduction

Mother and daughter are joint owner of a apartment. investment is done by mother. daughter is studying USA from one year. thay want to sell the property. Daughter is giving GPA to her mother .full transaction they wants in mother's account. what will be TDS deduction ?
Asked 5 years ago in Property Law
Religion: Hindu

First answer received in 30 minutes.

Lawyers are available now to answer your questions.

11 Answers

TDS is deducted in proportion of ownership in property of both buyers / sellers. A separate challan/s are required for each transaction. For example, in case of 2 buyers and 2 sellers, For TDS filing no of challans for each installment / lump sum payment is 4.

 

2) 

Long term capital gain tax will be 22.66% if NRI is selling a property in India after holding it for more than 3 years. In case holding period is less than 3 years then Short Term Capital Gain Tax will be applicable as per income tax slab. In case of short term capital gain, TDS applicable will be 33.99% irrespective of tax slab of the NRI.

 

3) 

for indian residents TDS of 1% is deducted on selling price but 

Ajay Sethi
Advocate, Mumbai
94522 Answers
7485 Consultations

5.0 on 5.0

1) Mother can save INR 2.80 lacs as tax exempted by filling up form  14 / 15 G.

And it totally depends upon when the property is purchased and what price is currently sold.

 

Need to check Index value and how amount your mother is going to reinvest in the bond or real estate.

 

Its totally depends upon them.

Ganesh Kadam
Advocate, Pune
12910 Answers
253 Consultations

4.9 on 5.0

TDS on Immovable PropertyTDS or Tax Deducted at Source is the collection of tax by a party to a transaction on behalf of the government. The TDS deductor pays the tax collected to the government. TDS has to be deducted at 1% from resident Indian sellers if the transaction is more than Rs 50 lakh in value

T Kalaiselvan
Advocate, Vellore
84711 Answers
2172 Consultations

5.0 on 5.0

sale of property exceeding Rs. 50 lakhs in India. 

a tax of 1% has to be deducted on the total sale consideration before making the payment to the seller. The buyer must then deposit this 1% TDS to the Government.

Mohammed Mujeeb
Advocate, Hyderabad
19299 Answers
32 Consultations

4.7 on 5.0

the regulation mandates that on sale of property exceeding Rs. 50 lakhs in India, a tax of 1% has to be deducted on the total sale consideration before making the payment to the seller.

procedure to deposit TDS

  1. Calculate 1% TDS on the total sale consideration. For a property getting sold for Rs. 60 lakhs, the seller would receive Rs.59,40,000 after tax.
  2. Make the payment online on Form 26QB. A challan is generated. Note that this must be done within 7 days from the end of the month in which TDS is deducted.
  3. The payment is reflected on the seller’s Form 26AS under the head Part F within 7 days.
  4. The buyer is then required to furnish a TDS certificate called Form 16B to the seller. This can be downloaded from the TRACES website.

    1. For this, register on the TRACES website with your PAN and challan number.
    2. Click on “Application for request of Form 16B” from the header.

Anilesh Tewari
Advocate, New Delhi
18077 Answers
377 Consultations

5.0 on 5.0

Tds to be deducted from mother's account 

Include in GPA that grantee has power to accept consideration 

Yusuf Rampurawala
Advocate, Mumbai
7485 Answers
79 Consultations

5.0 on 5.0

See even if mother receive the consideration.and daughter is NRI for mother 1 percent and for daughter.share 20 percent TDS needs to be deducted.

Shubham Jhajharia
Advocate, Ahmedabad
25514 Answers
179 Consultations

5.0 on 5.0

Since the mother is permanent resident of india and she is the one receiving the entire sale consideration from the sale of the apartment, you as the purchaser need to deduct TDS @ 1% into the PAN Number of the mother only. This fact must be captured while drafting the sale deed compulsorily.

Kiran N. Murthy
Advocate, Bangalore
1298 Answers
194 Consultations

5.0 on 5.0

In effect since June 2013, the regulation mandates that on sale of property exceeding Rs. 50 lakhs in India, a tax of 1% has to be deducted on the total sale consideration before making the payment to the seller.

The buyer must then deposit this 1% TDS to the Government. PAN of both the buyer and seller must be compulsorily specified while filling out Form 26QB to ensure that sellers don’t avoid taxes on the capital gains they make.

This rule does not apply on sale of agricultural land.

Prashant Nayak
Advocate, Mumbai
31807 Answers
175 Consultations

4.1 on 5.0

TDS will be 1% if sale above 50 lacs.

Yogendra Singh Rajawat
Advocate, Jaipur
22596 Answers
31 Consultations

4.4 on 5.0

Dear Sir,

Please ask this question on www.taxfull.com which sister concern of this website and where in its experts are charted accountants.

Netravathi Kalaskar
Advocate, Bengaluru
4952 Answers
27 Consultations

4.8 on 5.0

Ask a Lawyer

Get legal answers from lawyers in 1 hour. It's quick, easy, and anonymous!
  Ask a lawyer