Property tax - is also known as house tax. It is the tax that is levied on the owners of real estate by the concerned authorities like the municipal corporation or municipality. This is being utilized for the running and maintenance of local and public amenities like roads, sewage, parks, infrastructure, and lighting services.
This tax is usually levied on various real estate properties like commercial and residential buildings, and attached land and several multiple improvements are made to the property, but this is not applicable on vacant plots of land with no adjoining property or buildings.
Section 194IA offers the deduction of TDS on the purchase of immovable property at the time of a transaction. Until the introduction of Section 194IA, the Income Tax Act for TDS, and the sale of immovable property by the non-resident and compulsory acquisition of particular immovable properties.
The Finance Act of 2013 introduced Section 194IA to capture the transaction of purchase of immovable property by an Indian resident taxpayer.
A person, when he is a transferee, is responsible for paying an amount as a consideration to an Indian resident transferor against a transfer of any immovable property and must deduct TDS. The sale of that consideration needs to be greater than a value of Rs. 50 lakhs.
In accordance with Section 194IB, the payment of a lease, sublease, or tenancy in any of the following properties may be regarded as "rent."
The Section 194IA stipulates the following:
Any money deducted in accordance with Section 194ia must be deposited with the central government. The deadline is 30 days after the month's end when the deduction occurs. The statement-cum-challan in the 26QB form ought to be included. The deposit can be made to any other authorized banking institution via electronic remittance.
Whenever it occurs first, the buyer must deduct TDS on the subsequent occurrence.
The registrar and sub-registrar office submit the Annual Information Return (AIR) to the income tax division. Any immovable property's purchase and sale details, as well as its value, are contained in such AIR.
Therefore, the income tax agency records it if a purchaser does not deduct TDS, does not deposit TDS, or deducts TDS at a reduced rate. The purchaser will receive notification of such default from the income tax department.
Interest on no TDS deduction, penalty, interest on non-payment, and prosecution may all be applicable depending on the form of default.