The due date for deposit of TDS by buyers of property has been extended from 7 days to 30 days by CBDT.
As per section 194IA, buyers of property have to deduct 1% TDS when paying the sale consideration to the seller, if the amount of such consideration exceeds Rs. 50 lacs. Previously, TDS was required to be deposited within 7 days from the end of the month in which it was deducted.
From 01st June 2016, this period has been extended from 7 days to 30 days. This means that TDS will be deposited within 30 days from the end of the month in which it was deducted. For example, if TDS is deducted on July 15, 2016, due date to deposit TDS will be August 30, 2016. (Earlier it would have been August 7, 2016.)
It should be noted that, if the seller does not furnish his PAN then TDS will be deducted at 20% rate instead of 1%.
So next time you make a property transaction keep in mind the updated provisions regarding TDS due dates.