Are you planning to buy any property in India? If yes, you must know these TDS rules.

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If you're buying a property in India and the consideration exceeds Rs. 50 lakhs, you need to deduct TDS i.e. (Tax deducted at source) at the rate of 1% and then, remit 99% amount to the seller.

TDS is attracted at the time of payment of consideration.

But, deducting TDS requires one to obtain a tax account deduction number i.e. TAN. Although, in this case, it is not applicable as it is a special situation and the government does not intend to burden taxpayers with all compliances related to TDS.

Therefore, in this case, a buyer can deduct TDS with his/her PAN (Permanent account number) itself.

PAN of buyer and seller is mandatory. If either of them does not have PAN, he/she can apply for the same before tax is deducted and deposited.

The TDS amount so deducted needs to be deposited within 30 days from the last date of the month in which TDS was deducted.

For example: if the deduction was made on 10th June, it needs to be deposited by 31st July.