{"id":267,"date":"2023-06-05T09:05:45","date_gmt":"2023-06-05T09:05:45","guid":{"rendered":"https:\/\/vibrantfinserv.com\/kb\/?p=267"},"modified":"2025-03-21T10:10:58","modified_gmt":"2025-03-21T10:10:58","slug":"who-pays-the-tds-the-seller-or-the-buyer","status":"publish","type":"post","link":"https:\/\/vibrantfinserv.com\/kb\/who-pays-the-tds-the-seller-or-the-buyer\/","title":{"rendered":"Who pays the TDS, the seller or the buyer?"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-18\" src=\"https:\/\/vibrantfinserv.com\/kb\/wp-content\/uploads\/2023\/05\/Logo-Vibrant-FinServ-300x143.png\" alt=\"\" width=\"140\" height=\"67\" srcset=\"https:\/\/vibrantfinserv.com\/kb\/wp-content\/uploads\/2023\/05\/Logo-Vibrant-FinServ-300x143.png 300w, https:\/\/vibrantfinserv.com\/kb\/wp-content\/uploads\/2023\/05\/Logo-Vibrant-FinServ.png 482w\" sizes=\"auto, (max-width: 140px) 100vw, 140px\" \/><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_79 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/vibrantfinserv.com\/kb\/who-pays-the-tds-the-seller-or-the-buyer\/#Introduction\" >Introduction<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/vibrantfinserv.com\/kb\/who-pays-the-tds-the-seller-or-the-buyer\/#Definition_of_TDS\" >Definition of TDS<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/vibrantfinserv.com\/kb\/who-pays-the-tds-the-seller-or-the-buyer\/#Who_is_Responsible_for_Paying_TDS\" >Who is Responsible for Paying TDS?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/vibrantfinserv.com\/kb\/who-pays-the-tds-the-seller-or-the-buyer\/#Application_of_TDS_in_Various_Transactions\" >Application of TDS in Various Transactions<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/vibrantfinserv.com\/kb\/who-pays-the-tds-the-seller-or-the-buyer\/#1_Sale_of_Property_Section_194-IA\" >1. Sale of Property (Section 194-IA)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/vibrantfinserv.com\/kb\/who-pays-the-tds-the-seller-or-the-buyer\/#2_Rent_Payment_Section_194-I_194-IB\" >2. Rent Payment (Section 194-I &amp; 194-IB)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/vibrantfinserv.com\/kb\/who-pays-the-tds-the-seller-or-the-buyer\/#3_Professional_Fees_Section_194J\" >3. Professional Fees (Section 194J)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/vibrantfinserv.com\/kb\/who-pays-the-tds-the-seller-or-the-buyer\/#4_Salary_Income_Section_192\" >4. Salary Income (Section 192)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/vibrantfinserv.com\/kb\/who-pays-the-tds-the-seller-or-the-buyer\/#5_Interest_Payments_Section_194A\" >5. Interest Payments (Section 194A)<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/vibrantfinserv.com\/kb\/who-pays-the-tds-the-seller-or-the-buyer\/#Comparative_Table_Buyer_vs_Seller_Responsibility_in_TDS_Payment\" >Comparative Table: Buyer vs. Seller Responsibility in TDS Payment<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/vibrantfinserv.com\/kb\/who-pays-the-tds-the-seller-or-the-buyer\/#Benefits_of_TDS\" >Benefits of TDS<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/vibrantfinserv.com\/kb\/who-pays-the-tds-the-seller-or-the-buyer\/#Limitations_of_TDS\" >Limitations of TDS<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/vibrantfinserv.com\/kb\/who-pays-the-tds-the-seller-or-the-buyer\/#Conclusion\" >Conclusion<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/vibrantfinserv.com\/kb\/who-pays-the-tds-the-seller-or-the-buyer\/#FAQs\" >FAQs:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/vibrantfinserv.com\/kb\/who-pays-the-tds-the-seller-or-the-buyer\/#1_Who_pays_TDS_the_seller_or_the_buyer\" >1. Who pays TDS, the seller or the buyer?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/vibrantfinserv.com\/kb\/who-pays-the-tds-the-seller-or-the-buyer\/#2_When_is_TDS_deducted\" >2. When is TDS deducted?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/vibrantfinserv.com\/kb\/who-pays-the-tds-the-seller-or-the-buyer\/#3_Are_there_any_exceptions_to_TDS_payment\" >3. Are there any exceptions to TDS payment?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/vibrantfinserv.com\/kb\/who-pays-the-tds-the-seller-or-the-buyer\/#4_What_happens_if_the_buyer_does_not_deduct_TDS\" >4. What happens if the buyer does not deduct TDS?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/vibrantfinserv.com\/kb\/who-pays-the-tds-the-seller-or-the-buyer\/#5_Is_TDS_applicable_on_all_transactions\" >5. Is TDS applicable on all transactions?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/vibrantfinserv.com\/kb\/who-pays-the-tds-the-seller-or-the-buyer\/#6_How_does_the_seller_benefit_from_TDS\" >6. How does the seller benefit from TDS?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/vibrantfinserv.com\/kb\/who-pays-the-tds-the-seller-or-the-buyer\/#7_What_is_the_TDS_rate_for_property_sales\" >7. What is the TDS rate for property sales?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/vibrantfinserv.com\/kb\/who-pays-the-tds-the-seller-or-the-buyer\/#8_Can_the_seller_recover_the_deducted_TDS\" >8. Can the seller recover the deducted TDS?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/vibrantfinserv.com\/kb\/who-pays-the-tds-the-seller-or-the-buyer\/#9_What_documentation_is_required_for_TDS_deduction\" >9. What documentation is required for TDS deduction?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/vibrantfinserv.com\/kb\/who-pays-the-tds-the-seller-or-the-buyer\/#10_Are_there_penalties_for_incorrect_TDS_deduction\" >10. Are there penalties for incorrect TDS deduction?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Introduction\"><\/span><strong>Introduction<img loading=\"lazy\" decoding=\"async\" class=\"alignright\" src=\"https:\/\/files.oaiusercontent.com\/file-4zVXGmTAHaTXcvrFTLEfva?se=2025-03-21T10%3A14%3A52Z&amp;sp=r&amp;sv=2024-08-04&amp;sr=b&amp;rscc=max-age%3D604800%2C%20immutable%2C%20private&amp;rscd=attachment%3B%20filename%3Da0017593-6761-44cf-ab25-fe15b1b0b7d9.webp&amp;sig=26P8XX6z4KKR9opRcKiVYM2r2vi8hIHE\/vsakNFluo4%3D\" alt=\"Who pays the TDS, the seller or the buyer?\" width=\"357\" height=\"357\" \/><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Tax Deducted at Source (TDS) is a mechanism introduced by the government to collect tax at the source of income itself. This system ensures that tax is collected in advance and prevents tax evasion. However, a common question arises: <strong>Who is responsible for paying TDS\u2014the buyer or the seller?<\/strong> This article aims to clarify this question by exploring the concept of TDS, its benefits, limitations, applications, and a comparative analysis.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Definition_of_TDS\"><\/span><strong>Definition of TDS<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>TDS is a tax collection method where a specified percentage of the payment is deducted by the payer before making the payment to the recipient. The deducted amount is then deposited with the government by the deductor. This method is used across various transactions, including salaries, interest, professional fees, rent, and the sale of property.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Who_is_Responsible_for_Paying_TDS\"><\/span><strong>Who is Responsible for Paying TDS?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The responsibility for paying TDS depends on the nature of the transaction and the provisions specified under the Income Tax Act, 1961. Typically:<\/p>\n<ul data-spread=\"false\">\n<li><strong>Buyer:<\/strong> In transactions such as the purchase of immovable property exceeding a certain limit (as per Section 194-IA), the buyer is required to deduct TDS before making the payment to the seller.<\/li>\n<li><strong>Seller:<\/strong> The seller is not usually responsible for deducting TDS but is required to report the TDS deducted by the buyer while filing income tax returns.<\/li>\n<\/ul>\n<p>Thus, the obligation to deduct TDS is generally on the <strong>buyer (payer),<\/strong> while the seller (payee) bears the deduction&#8217;s impact.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Application_of_TDS_in_Various_Transactions\"><\/span><strong>Application of TDS in Various Transactions<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"1_Sale_of_Property_Section_194-IA\"><\/span><strong>1. Sale of Property (Section 194-IA)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul data-spread=\"false\">\n<li>If the transaction value exceeds \u20b950 lakh, the buyer must deduct TDS at 1% and deposit it with the government.<\/li>\n<li>The seller receives the amount after deduction and can claim credit while filing returns.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"2_Rent_Payment_Section_194-I_194-IB\"><\/span><strong>2. Rent Payment (Section 194-I &amp; 194-IB)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul data-spread=\"false\">\n<li>When rent paid exceeds \u20b92.4 lakh annually, the tenant (payer) must deduct TDS before payment to the landlord.<\/li>\n<li>The rate of deduction varies depending on whether the landlord is an individual or a company.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"3_Professional_Fees_Section_194J\"><\/span><strong>3. Professional Fees (Section 194J)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul data-spread=\"false\">\n<li>If professional fees exceed \u20b930,000, the payer must deduct TDS at 10% before making the payment.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"4_Salary_Income_Section_192\"><\/span><strong>4. Salary Income (Section 192)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul data-spread=\"false\">\n<li>Employers deduct TDS from employees&#8217; salaries before disbursing the salary and deposit the same with the government.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"5_Interest_Payments_Section_194A\"><\/span><strong>5. Interest Payments (Section 194A)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul data-spread=\"false\">\n<li>Banks and financial institutions deduct TDS on interest payments if they exceed the prescribed limit (\u20b940,000 for banks and \u20b950,000 for senior citizens).<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Comparative_Table_Buyer_vs_Seller_Responsibility_in_TDS_Payment\"><\/span><strong>Comparative Table: Buyer vs. Seller Responsibility in TDS Payment<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table>\n<tbody>\n<tr>\n<th>Transaction Type<\/th>\n<th>TDS Deductor (Payer)<\/th>\n<th>TDS Rate<\/th>\n<th>Applicable Section<\/th>\n<\/tr>\n<tr>\n<td>Sale of Property<\/td>\n<td>Buyer<\/td>\n<td>1%<\/td>\n<td>194-IA<\/td>\n<\/tr>\n<tr>\n<td>Rent Payment<\/td>\n<td>Tenant<\/td>\n<td>5%-10%<\/td>\n<td>194-I, 194-IB<\/td>\n<\/tr>\n<tr>\n<td>Professional Fees<\/td>\n<td>Service Receiver<\/td>\n<td>10%<\/td>\n<td>194J<\/td>\n<\/tr>\n<tr>\n<td>Salary Payment<\/td>\n<td>Employer<\/td>\n<td>As per IT Slabs<\/td>\n<td>192<\/td>\n<\/tr>\n<tr>\n<td>Interest on Deposits<\/td>\n<td>Banks\/Financial Institutions<\/td>\n<td>10%<\/td>\n<td>194A<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span class=\"ez-toc-section\" id=\"Benefits_of_TDS\"><\/span><strong>Benefits of TDS<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul data-spread=\"false\">\n<li><strong>Prevention of Tax Evasion:<\/strong> Ensures tax collection at the source and reduces tax evasion.<\/li>\n<li><strong>Regular Revenue Flow to the Government:<\/strong> Provides the government with a steady revenue stream.<\/li>\n<li><strong>Ease of Tax Payment for Taxpayers:<\/strong> Reduces the tax burden at the end of the financial year.<\/li>\n<li><strong>Compliance and Transparency:<\/strong> Helps track transactions effectively, ensuring transparency in tax collection.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Limitations_of_TDS\"><\/span><strong>Limitations of TDS<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul data-spread=\"false\">\n<li><strong>Administrative Burden on Deductors:<\/strong> Payers must maintain records, file TDS returns, and deposit tax on time.<\/li>\n<li><strong>Cash Flow Issues for Sellers:<\/strong> Since the seller receives payment after TDS deduction, it affects immediate cash availability.<\/li>\n<li><strong>Complexity in Compliance:<\/strong> Various rates and conditions make compliance challenging for individuals and businesses.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The responsibility of deducting and paying TDS lies with the payer (buyer or service recipient) in most cases. The seller, however, must ensure that the TDS deducted is reflected in tax returns. Understanding TDS provisions is crucial for compliance and smooth financial transactions. Buyers, sellers, employers, and professionals must be aware of their obligations under the Income Tax Act to avoid penalties and ensure seamless tax payments.<\/p>\n<p>&nbsp;<\/p>\n<p><strong>For more information to Visit <a href=\"https:\/\/www.incometax.gov.in\">https:\/\/www.incometax.gov.in<\/a><\/strong><\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"FAQs\"><\/span>FAQs:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"flex max-w-full flex-col flex-grow\">\n<div class=\"min-h-8 text-message flex w-full flex-col items-end gap-2 whitespace-normal break-words [.text-message+&amp;]:mt-5\" dir=\"auto\" data-message-author-role=\"assistant\" data-message-id=\"c251b41c-6eb0-436d-bf79-8f655e913d35\">\n<div class=\"flex w-full flex-col gap-1 empty:hidden first:pt-[3px]\">\n<div class=\"markdown prose w-full break-words dark:prose-invert light\">\n<h3><span class=\"ez-toc-section\" id=\"1_Who_pays_TDS_the_seller_or_the_buyer\"><\/span><strong>1. Who pays TDS, the seller or the buyer?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The buyer is responsible for deducting TDS from the payment made to the seller and paying it to the government.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"2_When_is_TDS_deducted\"><\/span><strong>2. When is TDS deducted?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>TDS is deducted at the time of payment or credit to the seller\u2019s account, whichever occurs first.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"3_Are_there_any_exceptions_to_TDS_payment\"><\/span><strong>3. Are there any exceptions to TDS payment?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Certain payments may be exempt from TDS, depending on the nature of the transaction and applicable laws.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"4_What_happens_if_the_buyer_does_not_deduct_TDS\"><\/span><strong>4. What happens if the buyer does not deduct TDS?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>If TDS is not deduct, the buyer may face penalties, and the seller may be liable to pay tax on the entire amount received.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"5_Is_TDS_applicable_on_all_transactions\"><\/span><strong>5. Is TDS applicable on all transactions?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>No, TDS is not applicable on all transactions; it depends on the type of payment and applicable tax laws.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"6_How_does_the_seller_benefit_from_TDS\"><\/span><strong>6. How does the seller benefit from TDS?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The seller can claim TDS deducted as a credit against their total tax liability when filing their income tax return.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"7_What_is_the_TDS_rate_for_property_sales\"><\/span><strong>7. What is the TDS rate for property sales?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The TDS rate for property sales is generally 1% for residential properties and 2% for non-residential properties, subject to certain conditions.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"8_Can_the_seller_recover_the_deducted_TDS\"><\/span><strong>8. Can the seller recover the deducted TDS?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Yes, the seller can recover the TDS deduct by the buyer while filing their income tax return.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"9_What_documentation_is_required_for_TDS_deduction\"><\/span><strong>9. What documentation is required for TDS deduction?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The buyer must issue a TDS certificate (Form 16\/16A) to the seller, which provides details of the TDS deduct.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"10_Are_there_penalties_for_incorrect_TDS_deduction\"><\/span><strong>10. Are there penalties for incorrect TDS deduction?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Yes, incorrect TDS deductions can result in penalties for the buyer, and the seller may have tax liabilities if TDS is not correctly apply.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"mb-2 flex gap-3 empty:hidden -ml-2\">\n<div class=\"items-center justify-start rounded-xl p-1 flex\"><\/div>\n<\/div>\n<p><strong>For more information to Visit <a href=\"https:\/\/www.incometax.gov.in\">https:\/\/www.incometax.gov.in<\/a><\/strong><\/p>\n<p>&nbsp;<\/p>\n<p><strong>For further details access our website <a href=\"https:\/\/vibrantfinserv.com\/\">https:\/\/vibrantfinserv.com\/<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Introduction Tax Deducted at Source (TDS) is a mechanism introduced by the government to collect tax at the source of income itself. This system ensures that tax is collected in advance and prevents tax evasion. However, a common question arises: Who is responsible for paying TDS\u2014the buyer or the seller? This article aims to clarify\u2026 <span class=\"read-more\"><a href=\"https:\/\/vibrantfinserv.com\/kb\/who-pays-the-tds-the-seller-or-the-buyer\/\">Read More &raquo;<\/a><\/span><\/p>\n","protected":false},"author":1,"featured_media":2832,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[62],"tags":[37434,37453,37440,37447,37428,37437,37443,37423,37471,37501,37507,37486,37465,37480,37510,37495,37450,37456,37468,37492,37462,37474,37432,37477,37513,37498,37489,37459,37483,37504,882,37427,37439,37431,37442,37422,37433,37452,37429,37436,37476,37497,37515,37446,37458,37473,37488,37482,37512,37500,37503,37455,37485,37491,37418,37494,37464,37479,37506,37470,37449,37509,37467,37461,2124,37444,37424,37419,1647,37426,37425,37451,37457,37445,37463,37454,37469,37505,37481,37448,37421,37475,37511,37496,37490,37460,37499,37484,37514,37466,37502,37441,37493,37472,37508,37438,37478,37420,37487,37435,37430,37417,23040],"class_list":["post-267","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tds-compliance","tag-buyertaxdeduction","tag-buyertaxdeductionliability","tag-buyertaxdeductionresponsibility","tag-buyertaxpayment","tag-buyertdsliability","tag-buyertdsobligation","tag-buyertdspayment","tag-buyertdsresponsibility","tag-buyervssellertaxationliability","tag-buyervssellertaxationliabilityresponsibilitydynamics","tag-buyervssellertaxationliabilityresponsibilityrules","tag-buyervssellertaxationliabilityrules","tag-buyervssellertaxationobligation","tag-buyervssellertaxationresponsibility","tag-buyervssellertaxationresponsibilitydynamicsobligation","tag-buyervssellertaxationresponsibilityrules","tag-buyervssellertaxationrules","tag-buyervssellertaxdeduction","tag-buyervssellertaxdeductionliability","tag-buyervssellertaxdeductionliabilityrules","tag-buyervssellertaxpayment","tag-buyervssellertaxpaymentobligation","tag-buyervssellertds","tag-buyervssellertdsliabilitydynamics","tag-buyervssellertdsliabilitydynamicsresponsibilityrules","tag-buyervssellertdsliabilityobligationdynamics","tag-buyervssellertdsliabilityresponsibility","tag-buyervssellertdsobligation","tag-buyervssellertdsresponsibilitydynamics","tag-buyervssellertdsresponsibilitydynamicsobligation","tag-incometax","tag-sellertaxdeduction","tag-sellertaxliability","tag-sellertaxobligation","tag-sellertaxpayment","tag-sellertdsliability","tag-sellertdsobligation","tag-sellertdsvsbuyertds","tag-sellervsbuyertax","tag-sellervsbuyertaxation","tag-sellervsbuyertaxdeductionresponsibility","tag-sellervsbuyertaxdeductionresponsibilityobligation","tag-sellervsbuyertaxdeductionresponsibilityobligationdynamics","tag-sellervsbuyertaxdynamics","tag-sellervsbuyertaxliability","tag-sellervsbuyertaxliabilitydynamics","tag-sellervsbuyertaxliabilityobligation","tag-sellervsbuyertaxliabilityresponsibility","tag-sellervsbuyertaxliabilityresponsibilitydynamicsobligation","tag-sellervsbuyertaxliabilityresponsibilityobligation","tag-sellervsbuyertaxliabilityresponsibilityrules","tag-sellervsbuyertaxobligation","tag-sellervsbuyertaxobligationresponsibility","tag-sellervsbuyertaxpaymentresponsibility","tag-sellervsbuyertds","tag-sellervsbuyertdsliabilityobligation","tag-sellervsbuyertdsliabilityrules","tag-sellervsbuyertdsobligationdynamics","tag-sellervsbuyertdsobligationdynamicsresponsibility","tag-sellervsbuyertdsobligationrules","tag-sellervsbuyertdsresponsibility","tag-sellervsbuyertdsresponsibilityobligationdynamics","tag-sellervsbuyertdsresponsibilityrules","tag-sellervsbuyertdsrules","tag-taxdeductedatsource","tag-taxdeductionbyseller","tag-taxdeductionobligation","tag-taxdeductionresponsibility","tag-tds","tag-tdsbybuyer","tag-tdsbyseller","tag-tdsbysellerorbuyer","tag-tdsbytransactionparticipant","tag-tdsbytransactionparty","tag-tdsbytransactionpartyresponsibility","tag-tdsincommercialtransaction","tag-tdsonassettransfer","tag-tdsonassettransferresponsibility","tag-tdsonbusinessdeal","tag-tdsonbusinesstransaction","tag-tdsonbuyer","tag-tdsoncommercialdeal","tag-tdsoncommercialdealresponsibility","tag-tdsoncommercialtransactionliability","tag-tdsoncontractualdeal","tag-tdsongoodspurchase","tag-tdsongoodspurchaseresponsibility","tag-tdsongoodstransaction","tag-tdsongoodstransactionobligation","tag-tdsonpropertysale","tag-tdsonpropertysaleobligation","tag-tdsonpurchase","tag-tdsonpurchasedeal","tag-tdsonrealestatetransaction","tag-tdsonrealestatetransactionobligation","tag-tdsonsale","tag-tdsonsaletransaction","tag-tdsonseller","tag-tdsonservicepayment","tag-tdsontransaction","tag-tdspaymentdynamics","tag-tdspaymentresponsibility","tag-tdsresponsibility"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.9 - 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