As per Finance Act of 2013, TDS is applicable on transfer of Immovable property, wherein the consideration of the property exceeds or is equal to ₹ 50 Lakhs. Sec 194 IA of the Income Tax Act, 1961 read with Rule 30, 31 and 31A of Income Tax Rules states that:
Major Points of Section 194IA
Agricultural Land Meaning Under Section 194IA
Agricultural land means agricultural lands in India, It is situated within jurisdiction of Municipality or Cantonment Board which has a population of not less than 10,000; or It is situated in any area within below given distance measured aerially. A land shall not be treated as Agriculture Land, if:
|Population of the Municipality||Distance from Municipal limit or Cantonment Board|
|More than 10,000 but does not exceed 1,00,000||Within 2 kms.|
|More than 1,00,000 but does not exceed 10,00,000||Within 6 kms.|
|Exceeding 10,00,000||Within 8 kms.|
Other Important Points
Interest on default of TDS payment
If TDS is not paid on time to the credit of the Central Government within a period of seven days from the end of the month in which the deduction is made. Interest under section 201 of Income Tax Act,1961 will be payable. This Act expressly states that any person liable to deduct TDS on the income distributed, makes default in deduction and / or payment of TDS shall be treated “assessee in default”. Such interest shall be paid before furnishing the Form 26QB.
Late fee on default in furnishing statement of TDS (26QB)
No filing or late filing of statement of TDS / TDS returns (Form 26QB) shall invite late fees under section 234E. It should be filed with challan within a period of seven days from the end of the month in which the deduction is made. Deductor will be liable to pay by way of fee of Rs 200 per day till the failure to file TDS statement continues. The total fee cannot exceed the amount of TDS deductible for which statement was required to be filed. TDS return cannot be filed without payment of late filing fees. In other words, the late filing fees shall be deposited before filing the TDS return (Form 26QB). It should be noted that Rs. 200 per day is not penalty but it is a late filing fee.
Penalty on default in furnishing statement of TDS (26QB)
No filing or late filing of statement of TDS / TDS returns (Form 26QB) shall invite penalty under section 271H. It should be filed with challan within a period of seven days from the end of the month in which the deduction is made. As section 271H which provides that a deductor shall pay penalty of minimum Rs 10,000/- to Rs 1 lakh for not filing the TDS statement within one year from the specified date within which he was supposed to file the statement. Penalty under section 271H will be in addition to late filing fees prescribed under section 234E. Apart from delay in filing of TDS/TCS return, section 271H also covers cases of filing incorrect TDS/TCS return. Penalty under section 271H can also be levied if the deductor/collector files an incorrect TDS return. In other words, minimum penalty of Rs. 10,000 and maximum penalty of upto Rs. 1,00,000/- can be levied if the deductor/collector files an incorrect TDS/TCS return. TDS return will be filed without payment of Penalty under section 271H. It may be levied on deductor by the assessing officer.
Notice from TDS Reconciliation Analysis and Correction Enabling System
TDS Reconciliation Analysis and Correction Enabling System is sending two types of notice. One for demand of interest payment if TDS is already paid but interest is payable and second for demand of TDS and interest payment if TDS is deducted or not deducted but not paid to the credit of the Central Government and TDS return (Form 26QB) not filed.
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