FAQ

1.   What is TDS compliance under section 194(IA)?

Ans: TDS compliance U/s. 194(IA) is to be duly complied by all the buyers of properties whose value is more than Rs. 50 Lakhs. 1% has to be deducted before making any payment to the builder and the said amount as deducted has to be remitted within the stipulated timelines to Income tax department.

2. Can you give any reference for TDS compliance on property?

Ans: You can refer the below details on section 194(IA).

Scope of section 194-IA:

Section 194-IA, provides that any person, being a transferee, responsible for paying to a resident transferor any sum by way of consideration for transfer of any immovable property (other than agricultural land) shall deduct an amount equal to one per cent of such sum as Income-tax 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 cheque or draft or by any other mode, whichever is earlier.

Who is the payer?

The payer is any person, being a transferee, responsible for paying to a resident transferor any sum by way of consideration for transfer of any immovable property.

Who is the payee?

The payee is resident transferor of any immovable property.

3.   Can I manage TDS compliance on my own?

Ans: Yes, you can if you know the process.

4.   Is TAN number required for paying TDS on property?

Ans: No, TAN is not required.

5.   Is TDS 1% additional cost on the property?

Ans: No, TDS of 1% is included in the cost of the property, in every instalment you will have to deduct 1% (excluding GST amount) and pay the balance to seller. seller will claim this 1% credit when you submit the Form 16B certificate.

6.   How to avail Biz Services for TDS compliance service?

Ans: Please share your contact details in the enquiry form we will write to you on next steps.

7.   How to make service fee payment to Biz Services?

Ans: You need to make the service fee payment to the the bank account details provided in the e-Mail through bank transfer. You can also scan the QR code and pay through Google Pay or Phone Pe.

8.   How do I calculate TDS amount?

Ans: TDS is 1% on the demand note value excluding GST amount. Further, TDS is not applicable on certain billing items.

9.    What is the implication if I do not pay TDS on time?

Ans: 1% of the TDS value is payable as interest per month and part thereof and Rs.200/day for every day of delay in TDS payment (up to TDS amount) as late fee.

10.    What is the process once we engage Biz Services for TDS compliance?

Ans: Once you avail the service you need to intimate us before making any payment to the builder, BIZ services will let you know the amount payable to seller and amount payable as TDS.

11.    What is the last date for TDS payment?

Ans: If you make any payment in this month (on any date from 1st to 30th/31st), you are supposed to pay TDS for this payment to government on or before 30th of next month.

12.    How do Biz Services manage my TDS compliance?

Ans: For all your payments made to seller till the day you avail our service, we will compute the liability and intimate you on next steps. Once the TDS amount is paid, Form 16B certificate will be shared by e-mail within 7 working days, you can forward the certificate to seller for due credit.

13.    What if Biz Services do not pay TDS on time? Who is responsible for penalty/late fee?

Ans: Once you have opted for Biz Services, it is our responsibility to ensure timely compliance, you will not have to pay any late fee or penalty.

14.    Should we inform Biz Services for payments made to seller?

Ans: Yes, you need to inform Biz Services before making payment to seller, we will share the tax liability and advise next steps.

15.    When can we expect Form 16b certificate for our payments to seller from Biz Services?

Ans: Within 7 working days from the date of TDS payment.

16.    How do I contact Biz Services for any queries/clarification?

Ans: You can write an e-Mail to support@bizservices.in mentioning your project name and unit number in the e-Mail subject. You will receive a response within 1 or 2 working days.

17.    Will Biz Services take care of TDS compliance for my previous payments to seller?

Ans: Yes, once you opt for their service, we will manage your compliance for your first payment till your last payment to seller for the unit you have availed the service.

18.    TDS value is not matching with 1% for the payments made by me to seller?

Ans: Please check co-owner’s e-Mail account as well, Form 16B will be sent to the co-owner’s e-Mail ID for every payment to seller, sum of both the certificates will be the TDS amount paid.

Please note TDS is not applicable on GST value, 1% should be calculated after deducting the GST portion on your payments.

19.    I have opted for Biz Services for my current unit, but now I am shifting to a different unit? How do I manage this?

Ans: Please write an e-Mail to support@Bizservices.in mentioning the project and unit details, we will update our records and manage the TDS compliance for your new unit, you need not pay any additional service fee in this regard.

20.    We are 2 owners, but one owner is contributing to purchase the property, should both owners do TDS compliance?

Ans: Yes, both or all owners have to do TDS compliance as they are covered under the definition of ‘Transferee/Payer’.

21.    I am filing my income tax returns, where should I show the TDS?

Ans: You need not show TDS on property in your income tax returns as this is the credit for seller and not for you, the TDS paid by Biz Services will reflect in 26AS section but no action is required from you.

22.    I have already made TDS payment and submitted Form 16B to seller, how will Biz services manage this?

Ans: If the TDS credit is reflected in seller statement of account, then Biz Services will consider and pay the TDS for balance payments only as applicable to avoid excess TDS payment.

23.    I have remitted TDS for first certain payments, but not submitted Form 16B to seller, how will Biz services manage this?

Ans: When you avail Biz Services, please share the TDS paid challan copies through e-Mail, Biz Services will generate Form 16B and share it with you, for your subsequent payments TDS will be paid as applicable considering the already paid TDS amount.

24.    I have deducted TDS while paying to seller but not remitted, how to proceed on this?

Ans: Biz Services will assist you in making TDS payments for all your payments to seller.

25.    I am an NRI, is TDS compliance applicable to me?

Ans: Yes, to everyone who buys a property in India from a resident of India, TDS compliance U/s. 194(IA) is to be duly complied by all the buyers of property whose value is more than Rs. 50 Lakhs.