I purchased a flat this year and settled full amount to the builder and completed Form 26QB too. Also this TDS amount is appearing in my 26AS. How to declare this purchase in the ITR? I do not see any provision or section relating to such property purchases. Kindly clarify.
Purchaser is not required to give details of purchase in ITR. Only seller is required to give details of property sold under 'Capital gain taxes'
However you should disclose all your assets and liabilities in ITR, if your total income in a previous year exceeds Rs 50 Lakh.
A property PURCHASE does not need to be declared in your ITR as income. ITR reports INCOME and GAINS, not capital expenditure.
When you BUY property, there is no ITR filing requirement for the purchase itself. However:
- If the purchase is above 30 lakh, the registrar reports it to the Income Tax Department via SFT (Statement of Financial Transactions). This may appear in your AIS (Annual Information Statement).
- You must deduct TDS at 1% under Section 194-IA and file Form 26QB if the property value is 50 lakh or more. This is a separate compliance step, not an ITR entry.
- The purchase cost becomes your Cost of Acquisition for future capital gains computation when you sell.
When you SELL property in the future: report the capital gains (sale price minus indexed cost) in Schedule CG of ITR-2.
For now, the purchase just needs Form 26QB compliance (if above 50L). No ITR entry needed for the purchase itself. This [Form 26QB guide](https://taxgarden.in/blog/tds-on-property-purchase-section-194-ia-form-26qb-india) covers TDS filing step by step.
JOIN LARGEST DISCUSSION PLATFORM
Sign up to discuss taxation, accounting and finance topics with experts from all over India.
Join Discussion
