PUNE BRANCH OF WICASA OF ICAI English Medium School Campus, Shivdarshan Rs. 200 NA 7 INTRODUCTION As we all know in the present era the real estate industry in India has progressed

PUNE BRANCH OF WICASA OF ICAIPUNE BRANCH OF WICASA OF ICAI

NOVEMBER2016

E NEWSLETTER

Pune Branch of WICASAICAI BHAWAN, Plot No. 8, Parshwanath Nagar, Munjeri, Opp. Kale Hospital, Bibwewadi, Pune - 411037.

Tel: 020 24212251 / 52 | Web: www.puneicai.org | email: [email protected] | Facebook: Pune WICASA

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A lot of trouble in the world will disappear, if everyone learn to talk to each,instead of talking about each other.

generator manufacturing unit 'Champ Energy Ventures Pvt. Ltd.' was also organised. For all these and other upcoming events, Pune WICASA Team needs many helping hands to coordinate. A volunteer meet had also been organised to interact with those all who are interested in coordinating and organising WICASA activities, followed by which the sub committees of Pune WICASA were announced.

November is going to be full of activities too. So, do come, participate, enjoy and also study well.

All the very best for your exams...!

Hello Friends,

I am glad to communicate with you through this newsletter. This month must have been a rush for you all. This is a time when your skills are being tested and abilities are being polished.

Along with Income Tax and other statutory deadlines, the month is very important for those who have their exams in November. For helping all such students, Pune WICASA had organised Mock Tests and Crash Courses last month. However, only studies are not enough to crack such professional exams. Time management, stress management are equally important. Pune WICASA had arranged one seminar on “Effective Solution Through Facilitation” for guiding students to manage their time, stress etc.

Besides studies, an Industrial Visit to a

Chairman's Communication

Warm Regards,

CA. Rekha DhamankarChairpersonPune Branch of WIRC of ICAI

Pune Branch of WICASAICAI BHAWAN, Plot No. 8, Parshwanath Nagar, Munjeri, Opp. Kale Hospital, Bibwewadi, Pune - 411037.

Tel: 020 24212251 / 52 | Web: www.puneicai.org | email: [email protected] | Facebook: Pune WICASA

3

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this month which helped students to manage their time and stress related issues.

Volunteers have always been a very important part of the team. A volunteer meet for all current & newly interested volunteers was organised by last month, followed by which sub committees of Pune WICASA were formed. Also, an Industrial Visit to 'Champ Energy Ventures Pvt. Ltd.' had been organised to introduce students with assembling of engine bodies of Small Generators.

Activities of Pune WICASA has always got an enthusiastic response from you all. I, on behalf of the Pune Branch thank you all for th is . So , keep contr ibut ing , keep participating!

Wishing you all Good Luck for your exams..!

Dear Friends,

It's my pleasure to talk to you all through this digital platform. It is a high time for those who have their exams upcoming & are going to show their excellence and knowledge through these examinations. I am sure you all are giving your best to go one step ahead in this course.

October must have been full of work and studies for all of you. The month also had various activities organized by Pune W I C A S A . L i k e M o c k Te s t s w e r e conducted for IPCC and Final Students Mock Test for CPT Students is scheduled this month. Crash Course for Final was one of the major activities in this month organised by Pune WICASA. The Seminar o n “ E f f e c t i v e S o l u t i o n T h r o u g h Facilitation” based on Time Management was also a part and parcel of the activities

Vice-Chairman's communication

Warm Regards,

Karan ChandwaniVice ChairmanPune Branch of WIRC of ICAI

Stay Connected with Pune WICASA @ http://puneicai.org/studentswww.facebook.com/wicasapune

[email protected] address: 8149212084 / 9730384750 / 9762410870Available on Whatsapp �

�Do not follow where the path may lead. Go instead where there is no path and leave a trail.�

� Ralph Waldo EmersonYou can't reach for anything new if your hands are still full of yesterday's junk.

Moments – October 2016 (Events held in the month of October 2016)

Crash Course for CA Final StudentsCrash Course for CA Final Students

Full Day Seminar on GST by CA. Jayesh Gogre Sir (Mumbai)

Full Day Seminar on GST by CA. Jayesh Gogre Sir (Mumbai)

Mock Test organized for CA. IPCC & Final Students

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Don't let life change your goals because achieving those goals can change your life.

Moments – October 2016 (Events held in the month of October 2016)

Seminar on 'Effective Solution Through Facilitation’

Mock Test organized for CA. IPCC & Final Students

Industrial Visit to Champ Energy Ventures Private Limited

Seminar on 'Effective Solution Through Facilitation’

Industrial Visit to Champ Energy Ventures Private Limited

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� Ralph Waldo EmersonThinking should become your capital asset, no matter whatever ups and downs

you come across in your life.

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� Ralph Waldo EmersonWe've got to put a lot of money into changing behavior.

Day & Date Particulars Time & Venue Fees Faculty

2nd November, Wednesday

Smart & Clean India Campaign & Awareness

Drive

Sinhgad Fort,At 7.00 am

NA NA

6th November,Sunday

Debate Competition for students

CA P.C. Paramar Auditorium, ICAI Bhawan10.00am to 1.00 pm

NA NA

5th November & 6th November

Regional GST ConclaveSwami Vivekanand Auditorium, MIT college

campus9.30am to 5.30 pm

Rs. 750 for students -

18th November,Friday

Industrial Visit to TATA Motors

TATA Motors, Pimpri10.00am to 1.00 pm Rs. 50 (incl. Lunch) NA

27th November, Sunday

Mock Test for CPT December 2016 attempt

College of Engineering & Technology, Muktangan English Medium School Campus,

ShivdarshanRs. 200 NA

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INTRODUCTION

As we all know in the present era the real estate industry in India has progressed enormously in all respects. Especially, the demand for this industry is r is ing cont inuously in the metropolitian cities. We also need to take a view as to what our Income Tax Act,1961 has to say about a transaction with respect to the same. We all can know the income tax implications such as capital gain valuation, whenever there is a sale of an immovable property. But we also need to take a view of the compliance of the IT Act,1961 when a person purchases an immovable property.

Sec 194IA:

The provisions relating to Tax deduction at source while purchasing an immovable are explained through Sec 194IA of the Income Tax Act,1961.The Section was introduced vide Finance Act,2013.As per Finance Act,2013,with effect from 01.06.2013,every transaction involving transfer of immovable property the buyer is liable to deduct TDS @1% at the time of

m a k i n g p a y m e n t o f s a l e o f consideration.

Crux of the Section:

Person responsible for deduction: Any p e r s o n m a k i n g p a y m e n t o f s a l e consideration to a resident transferor for purchase of immovable property.

Threshold limit: TDS shall be deducted on the entire sale consideration if the sale consideration is equal to or exceeds Rs. 50 lakhs.

Rate: TDS shall be deducted at the rate of 1% of total sale consideration. A higher rate may be applicable in absence of PAN of the transferee.

Time of deduction: Tax shall be deducted at the time of credit of such sum to the account of the transferor or at the time of payment of such sum either by cash, cheque or by demand draft, whichever is earlier.

Type of property: No TDS is required to be deducted for purchase of a rura l agricultural land as defined in Sec 2(14)(iii)(a)/(b).

Few important points:

TDS on installments: Since it has been mentioned that TDS needs to be deducted at the time of payment or at the time of credit whichever is earlier, TDS needs to be deducted on all such installments paid to the transferee.

TDS in case of co-owners: There are two important points when there are more than one buyers for the same immovable property namely:

a )Every buyer needs to furnish statement in the prescribed form for payment of TDS restricted to the agreed share of property to be purchased by him. That is to say, every buyer shall

deduct TDS on

ALL ABOUT SEC 194IA

Once you start a working on something, don't be afraid of failure and don't abandon it.

People who work sincerely are the happiest.


[email protected] address: 8149212084 / 9730384750 / 9762410870Available on Whatsapp � 8



A man is great by deeds, not by birth.

h i s s h a r e a n d r e m i t t o t h e government independently.

b)Sec 194IA is attracted once the value of the immovable property as a whole is equal to or exceeds Rs.50 lakhs. For eg: If two buyers with 50% share each purchase a property of Rs.80 lakhs, Sec 194IA liability will be attracted and the buyers cannot take a plea that the respective share held by them against the said property does not exceed Rs.50 lakhs.

Certificate for tax deduction at source: Every person responsible for TDS deduction u/s 194IA shall furnish to the transferee a certificate of Tax deduction at source in Form 16B within a period of fifteen days from the due date of furnishing challan cum statement in Form 26QB.The said Form 16B is to be made available to the seller by downloading the same from the portal authorized by the Income Tax department.

Procedure of payment:

The procedure of payment is different than TDS payments in the other sections of the act.

While making payment of TDS, the transferor is exempted from procurement of TAN(Tax Deduct ion Account Number) .Any sum deducted u/s 194IA shall be paid to the credit of the central government within a period of seven days from the end of the month in which such deduction was made. The said payment shall compulsorily be accompanied with a challan cum statement named as Form 26QB.Form 26QB has been specifically designed for payment of TDS on immovable property.

Consequences of Non-compliance:

Default of TDS deduction and payment:

If TDS is not paid to the credit of central government within the prescribed time i.e within seven days from the end of the month in which such deduction was made, interest shall be levied at the rates specified u/s 201 of the Income Tax Act,1961.It refers that if TDS has been deducted but not paid interest shall be levied at the rate of one and half percent on the amount of TDS for every month or part of the month thereof commencing from the date of deduction up to the date of payment. Secondly, if TDS has not been deducted on the said transaction itself, then interest at the rate of one percent on the amount of TDS for every month or part thereof commencing from the date on which tax was liable to be deducted up to the date on which tax was actually deducted.

Default in furnishing statement of TDS in Form 26QB:

Delay in furnishing statement of TDS in form 26QB shall invite late filing levy as specified u/s 234E of the income tax act,1961.The buyer shall be liable to pay a sum of Rs.200/- per day for the number of days to which the delay in furnishing the statement has been made. However, the levy shall be subjected to a maximum of the TDS to be reported through such statement.

It is also important to note that penalty u/s 271H shall be levied for non-filing of Form 26QB.The section states that the buyer shall be liable for a discretionary penalty ranging from Rs.10,000 to Rs.1 lakh if he fails to furnish the said statement of TDS within a period of one year commencing from the due date up till which the buyer was supposed to furnish such statement. Such penalty would be in addition to the late filing levy as mentioned in Sec 234E of the Income Tax Act,1961.

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Pune Branch of WICASAICAI BHAWAN, Plot No. 8, Parshwanath Nagar, Munjeri,

Opp. Kale Hospital, Bibwewadi, Pune - 411037. Tel: 020 24212251 / 52 | Web: www.puneicai.org

email: [email protected] | Facebook: Pune WICASA

Documents

PUNE BRANCH OF WICASA OF ICAI English Medium School Campus, Shivdarshan Rs. 200 NA 7 INTRODUCTION As we all know in the present era the real estate industry in India has progressed