TDS (Tax Deducted at Source) on property in India refers to the tax deduction made at the time of payment by the buyer to the seller for the sale of immovable property. The buyer is required to deduct TDS at the rate of 1% of the sale consideration if the sale value of the property is more than Rs. 50 lakhs.
The TDS amount deducted by the buyer is then remitted to the government account and the seller can claim credit for the same while filing their income tax return. The TDS on property is governed by Section 194-IA of the Income Tax Act, 1961.
What Is TDS On Property?
The Finance Bill 2013 has proposed that purchaser of an immovable property (other than rural agricultural land) worth Rs 50 lakh or more is required to pay withholding tax at the rate of 1% from the consideration payable to a resident transferor
Who Is Responsible To Deduct The TDS On Sale Of Property?
According to rules in respect of tax deducted at source, buyers of the property would have to deduct the TDS and deposit the same in the government treasury.
I Am Buyer, Do I Require To Procure TAN To Report The TDS On Sale Of Property?
Buyer or Purchaser of the property is not required to procure Tax Deduction Account Number (TAN). The Buyer is required to quote his or her PAN and seller’s PAN.
What is Form 26QB?
The online form available on the TIN website for furnishing information regarding TDS on property is termed as Form 26QB.
What is Form 16B?
Form 16B is the TDS certificate to be issued by the deductor (Buyer of property) to the deductee (Seller of property) in respect of the taxes deducted and deposited into the government account.
How To File TDS On Sale Of Property: Steps To Fill Form 26QB:
- Go to TIN Protean (formerly NSDL eGov) website ( https://www.protean-tinpan.com/ ).
- Under ‘TDS on sale of property’, click on “Online form for furnishing TDS on property (Form 26QB)”
- Select the applicable challan as “TDS on Sale of Property”.
- Fill the complete form as applicable.
- User should be ready with the following information while filling the form 26QB:
-PAN of the seller and buyer
-Communication details of seller & buyer
-Property details
-Amount paid/credited & tax deposit details
- Submit the duly filled form to proceed. A confirmation screen appears.
- After confirming, a screen appears showing two buttons as “Print Form 26QB” and “Submit to the bank”.
- A unique acknowledgement number is also displayed on the screen. It is advisable to save this acknowledgment number for future use.
- Click on “Print Form 26QB” to print the form. Then click on “Submit to the bank” to make the required payment online through internet banking.
- Then proceed to the payment page through the internet banking facility of various banks.
- For list of authorized banks, please refer https://onlineservices.tin.egov-nsdl.com/etaxnew/Authorizedbanks.html
On successful payment a challan counterfoil will be displayed containing CIN, payment details and bank name through which e-payment has been made. This counterfoil is proof of payment being made.
- Proceed to the TRACES portal( www.tdscpc.gov.in) after 5 days to download Form 16B.
Steps to Download Form 16B:
- Register & login on TRACES portal ( www.tdscpc.gov.in) as taxpayer using your PAN.
- Select “Form 16B (For Buyer)” under the “Downloads” menu.
- Enter the details pertaining to the property transaction for which Form 16B is to be requested. Enter the Assessment Year, Acknowledgment Number, PAN of Seller and click on “Proceed”.
- A confirmation screen will appear. Click on “Submit Request” to proceed.
- A success message on submission of download request will appear. Please note the request number to search for the download request.
- Click on “Requested Downloads” to download the requested files.
- Search for the request with the request number. Select the request row and click on “HTTP download” button.
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