TDS or Tax Deduction at Source on property in India pertains to deducting tax at the time of payment made by the buyer to the seller when immovable property is sold. If the sale value of the property is above Rs 50 lakh, the buyer can deduct TDS at the rate of 1% of the sale price. The deducted TDS amount is then deposited into the government account. Similarly, the seller can claim credit on the same while filing their income tax returns. TDS on property is governed by Section 194-IA of the Income Tax Act, 1961.
As per the rules regarding tax deducted at source, property buyers are responsible for deducting TDS and depositing it in the government treasury. The buyer does not need to obtain a Tax Deduction Account Number (TAN) and can quote his and the seller’s PAN. An online form named ‘Form 26QB’ is available on the TIN website to provide information related to TDS on property.
Form 16B is a TDS certificate issued by the buyer to the seller of the property, conveying the taxes deducted and deposited in the government account. To file TDS on the sale of property, the buyer can follow the steps to fill Form 26QB on the TIN Protean website. The form requires the PAN of seller and buyer, their contact details, details of the property, receipt and tax deposited. After submission of the form, payment can be made online through an authorized bank, and a counterfoil with payment details can be saved.
After five days of Form 26QB submission, sellers can visit the TRACES portal and download Form 16B to claim tax deduction while filing their income tax return. News18 Tamil provides instant access to global and local news, including breaking news and latest Tamil news. Tamil Nadu residents can watch News18 Tamil Nadu TV on various cable and DTH networks.
TDS (Tax Deduction 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. If the sale value of the property exceeds Rs 50 lakh, the buyer can deduct TDS at the rate of 1% of the sale price.
The amount of TDS deducted by the buyer is then paid into the government account. Additionally, the seller can claim the same credit while filing their income tax return. TDS on this property is governed by Section 194-IA of the Income Tax Act, 1961.
What is TDS on Property?
The Finance Bill 2013 proposes that a buyer of immovable property (other than rural agricultural land) valued at Rs 50 lakh or more will have to pay 1% tax on the amount payable to the transferee of the land.
Who is liable to deduct TDS on sale of property?
According to the rules relating to tax deducted at source, property buyers have to deduct the TDS and deposit it in the government treasury.
Property buyer need to purchase TAN to report TDS on sale of property?
The property buyer does not need to obtain a Tax Deduction Account Number (TAN). It is enough for the buyer to quote his PAN and seller’s PAN.
What is Form 26QB for?
An online form called ‘Form 26QB’ is available on the TIN website to provide information related to TDS on property.
What is Form 16B?
Form 16B is a TDS certificate issued by the buyer of the property to the seller of the property in respect of taxes deducted and deposited in the government account.
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How to File TDS on Sale of Property: Steps to Fill Form 26QB:
- of TIN Protean (formerly NSDL eGov). https://www.protean-tinpan.com/ Go to the website.
- Under ‘TDS on Sale of Property’, click on “Online Form for Payment of TDS on Property (Form 26QB)”.
- Select the applicable challan as “TDS on sale of property” and fill it.
Following documents are required to be ready to fill Form 26QB:
– PAN of seller and buyer
– Contact details of seller and buyer
– Details of property to be transferred
-Details of amount paid/receipt & tax deposited
- Submit the completed form. A confirmation screen will appear. After confirmation, a screen will appear showing two buttons “Print Form 26QB” and “Submit to Bank”.
- A unique acknowledgment will be displayed on the counting screen. It is better to save this acknowledgment number for future use.
- Click on “Print Form 26QB” to print the form. Then click on “Submit to Bank” to pay the required fee online through Internet Banking.
- Then go to the payment page through internet banking facility of various banks.
For List of Authorized Banks, https://onlineservices.tin.egov-nsdl.com/etaxnew/Authorizedbanks.html See the
Once the payment is made, a challan counterfoil containing the CIN, payment details and the name of the e-payment bank will be displayed. That is proof of payment. Save it.
After 5 days of submission of Form 26QB visit TRACES portal www.tdscpc.gov.in and download your Form 16B. Then the seller can show it while submitting his income tax return and claim tax deduction.
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