In the budget of 2025-26, the Central Government has made a major change in TAX Deduted at Source related to property purchase and sale. This change has been made especially keeping in mind the joint property owners and buyers to prevent tax evasion and bring transparency.
What was the first rule?
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If each joint owner of a property was less than Rs 50 lakh,
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And the price of the entire property should be more than Rs 50 lakh,
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Even then TDS was not cut.
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The reason for this was that the limit of less than 50 lakhs applied to the individual part.
What is the new rule?
From now on, TDS will be calculated not on the part of the joint stakeholders, but at the total sales price of the property.
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If the total price of the property is more than Rs 50 lakh,
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So it will be mandatory for the buyer to cut 1% TDS at full price,
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Whether one or more buyers or sellers.
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This rule will not apply to agricultural land.
How much TDS will be cut if there is no PAN?
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If the seller does not give PAN details, TDS will be cut up to 20%.
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In such a situation, the seller will not get a credit for this.
TDS cut and form filling process
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Form 26QB:
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It is necessary to fill TDS within 30 days of cutting
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Form 16B:
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Buyer will have to be released within 15 days of filling Form 26QB
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TDS discount position
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Under section 197 if buyers or sellers want less or zero tDS exemption,
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So they have to take certificate from the Income Tax Department.
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For this, the buyer will need TAN number.
Other special things
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If the seller is non-regified, the rate of TDS will be 12.5%.
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If the benefit of indexation is taken, then 20% + cess and surcharge will be levied.
Why did the government make these changes?
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The purpose of these changes is:
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Rein in tax evasion
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Transparency
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And strengthening the “Tax, make a country” campaign
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