The Goods and Services Tax (GST) is an indirect tax that was implemented in India on July 1, 2017 and is applicable across the country, replacing multiple cascading taxes imposed by the central and state governments previously. Goods and services are taxed at the following rates: 0%, 5%, 12%, 18%, and 28% under the GST. After a one-third abatement for land costs on 18 percent, the effective GST rate for under-construction real estate developments will be 12 percent. However, GST will not be charged on units sold after the completion certificate has been obtained.
GST would be payable on the total unit consideration at the applicable rate as notified by the government from time to time. All purchasers have already received input credit as part of the base price. Variable costs would be subject to GST at the stated rates, which are now 18 percent but might fluctuate depending on government directions.
On our projects, we do not provide discounts. All of our prices are GST-adjusted and based on our product line. PS is involved in a number of projects with a variety of developers and investors. However, we do not manage, develop, or sell every project. In such initiatives, we are only spectators. The choice to discount or give special schemes in various projects is up to the primary developer in those projects.
According to the Finance Bill 2013, a purchaser of an immovable property (other than rural agricultural land) valued â1 50 lakh or more is required to pay a 1% withholding tax on the consideration provided to a domestic transferor.
The property buyer or purchaser is not necessary to get a Tax Deduction Account Number (TAN). The buyer must provide his or her PAN as well as the seller’s PAN.
The buyer of the property would be required to deduct the TDS and deposit it in the government treasury, according to the regulations governing tax deducted at source.
The required deadline for payment of TDS on transfer of immovable property has been extended to thirty days (from the previous seven days) from the end of the month in which the deduction is made, according to CBDT announcement no. 30/2016 dated April 29, 2016.
The seller’s PAN is required. Before completing the purchase, the same might be obtained from the Seller.
Form 26QB is the online form accessible on the TIN website for submitting information on TDS on real estate.
The TDS certificate provided by the deductor (Buyer of property) to the deductee (Seller of property) in respect of the taxes deducted and deposited into the Government Account is known as Form 16B.
Property is classified as a capital asset, and capital gains from its sale are subject to capital gains tax. After correcting for inflation, transfer, and refurbishment costs, such profits are determined.
a) The Deductor’s Form 26AS (Annual Tax Statement) contains the acknowledgment number for the Form 26QB that was submitted. The same may be accessed on the TRACES website (www.tdscpc.gov.in) or by going to the TIN website and clicking on the ‘View Acknowledgment’ option. To get the Acknowledgment Number, the taxpayer must input the Buyer’s and Seller’s PANs, the Total Payment, and the Assessment Year (as specified when submitting Form 26QB).
If you own a residence for less than three years before selling it, it’s considered a short-term capital asset, and any profit you make is considered a short-term capital gain. Short-term Capital Gains have no tax exemptions and must be paid according to the appropriate tax slab. If you sell a property after owning it for more than three years, it is considered a long-term capital asset, and the gain is referred to as long-term capital gain. A fixed exemption rate of 20% applies to such gains.
There are a few long-term capital gains exemptions available if you: Purchase or build a new home: You are free from paying capital gains tax if you build a new house or buy one with the money you obtain from selling a property. The new acquisition, on the other hand, shall be made one year before or within two years of the sale, and the construction should be finished within three years of the transfer date. Within three years after the date of purchase or completion of construction, the new property purchased or constructed should not be sold. Scheme for a Capital Gains Account: You can save the money you receive under the Capital Gain Account Scheme (CGAS) in specified banks. CGAS can assist you.