How to pay TDS on purchase of immovable property and file tds return / form (26QB)

As per Finance Bill of 2013, TDS is applicable on sale of immoveable property wherein the sale consideration of the property exceeds or is equal to ₹ 50,00,000 (Rupees Fifty Lakhs). Sec 194 IA of the Income Tax Act, 1961 states that for all transactions with effect from June 1, 2013, Tax @ 1% should be deducted by the purchaser of the property at the time of making payment of sale consideration to the seller.

Tax so deducted should be deposited to the Government Account through any of the authorised bank branches or online in form 26QB with in 30 days of the end of the month in which tax was deducted.

In case of instalment payments, TDS has to be deducted on each instalment paid.

TDS certificate can also be downloaded in form 16B by the deductor from the Traces website for providing the same to deductee.

TAN number is not required for deducting and depositing TDS under section 194IA.

Procedure of Filing Form 26QB and Depositing Tax

Go to link – https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp

Select —-> TDS on Property (Form 26QB)

Furnish Following details in form for buyer, seller and property:

  • Buyer(s) Details Required for filing 26QB: PAN, complete address, Email, Mobile
  • Seller(s) Details Required for filing 26QB: PAN, complete address, Email, Mobile
  • Complete address of Property Transferred
  • Date of Agreement/Booking
  • Total Value of Consideration
  • Payment Type – Lumpsum / Installment
  • Date of Payment to the Transferor/Seller Date of Tax Deduction

Deposit the Tax online at time of furnishing the aforesaid form 26QB or deposit it with in 7 days of filing the form 26QB as per the option provided in the form.

Register on Traces (https://contents.tdscpc.gov.in) with PAN and challan details and download TDS certificate in form 16B.