Ushma & Associates
TDS return filings:
A person who is liable to make payment of specified nature to any other person shall deduct tax at source and remit the same into the account of the Central Government which is called TDS i.e Tax deducted at source or withholding tax. The person from whose income tax has been deducted at source would be entitled to get credit of the amount so deducted on the basis of Form 26AS or TDS certificate issued by the deductor.
If NRI is planning to purchase a property in India then he shall deduct withholding tax on making each payment of sale consideration to seller. Similarly, if resident is buying a property from non-resident, he shall also deduct TDS from sale consideration. Once TDS is deducted it shall be deposit to the income tax department on seller’s behalf through filling a prescribed challan and making an online payment. After that a TDS return shall be filed with specified dates and then TDS certificate certificate shall be given to deductee for his records.