How to handle TDS on sale of property
Since
June 2013, it has been mandatory for buyers of immovable property to
deduct TDS from the amount to be paid to the seller. It is the
responsibility of the buyer to deduct TDS if the transaction value
exceeds Rs. 50 lakh. The buyer is required to deduct TDS @ 1% on the
total consideration and deposit the same in the account of the income
tax authorities in the prescribed format.
Form
Form 26QB
must be filled by the buyer either online or offline to deposit the TDS.
One can click the following link to access the form online.
Due date for filing
The challan (Form 26QB) must be filed within 7 days from the month in which the TDS was deducted by the buyer.
Details
Information
with respect to the buyer and seller (name, address, PAN, status),
details of the property, consideration and TDS payable must be entered
in the form.
Payment
One can
choose to pay either through Netbanking or at the branch of the bank. If
the taxpayer chooses e-tax payment on subsequent date at the bank
branch, an acknowledgement number is generated. This number must be
retained by the taxpayer to be presented to the bank while making the
payment.
Process
Once the
form is filed and payment made to the income tax authorities, approved
form 26QB or form 16B can be downloaded by logging into TRACES as a tax
payer. Form 16B must be provided by the buyer to the seller as a proof
of deposit of TDS.
Points to note
- Dealings in agricultural land are excluded from the requirements of these provisions.
- If the consideration is being paid in installments, TDS must also be deducted on each installment.
- If PAN is not provided by the seller, TDS @ 20% is deductible.