TDS on Sale of Property

by Abhinav Gulechha on January 5, 2014

This post gives information on a recent release by Tax Information Network NSDL on TDS on sale of property.

  • According to the Finance Bill 2013, it states that any person who has purchased an immovable property of Rs 50 lakh or more (excluding rural agricultural land) has to pay tax at the rate of 1% from the consideration that is payable to the seller.
  • If the amount of property sold is Rs. 65 lakhs, then TDS on property will be deducted  on the amount credited / paid for the transaction i.e., 65 lakhs.
  • The person who is buying the property will have to deduct the TDS and deposit it in the Government treasury.
  • Buyer need not have TAN (Tax Deduction Account Number), he needs to quote his/her PAN and sellers PAN.

 Procedure to pay TDS on sale of property on TIN NSDL website:

  • Log on to the TIN NSDL website by clicking here
  • There is an online Form 26QB available on the site, buyer will need to fill the form mentioning the relevant details of the transaction. You can download the form here
  • If more than one buyer or seller is there, then each needs to fill Form 26QB for unique buyer seller combination. Suppose there is 1 buyer and 2 sellers in that case, for each buyer seller combination 2 forms needs to be filled. If two buyers and two sellers are there then four forms needs to be filled for respective shares.
  • Buyer needs to fill following details in this formIn case of any errors made, buyer (deductor) will have to visit Assessing Officer or CPC – TDS for correction of errors
    • PAN no. of buyer and seller of  the property
    • Address of  the property and its buyer and seller
    • Financial Year of the purchase transaction
    • Major Head code which tells about the type of tax applicable
    • Value of Property
    • Date of agreement / booking
    • Amount paid or credited (Transaction amount)
    • Rate of TDS
    • TDS amount
    • Dates at which payment / credit / deduction was done
    • You need to selection the option “Payment of taxes immediately”
  • After entering required details, click on Proceed button. System will validate the PAN no. entered by you.
  • If PAN no. is not registered in Income Tax Dept. Database you will not be allowed to proceed.
  • If PAN no. is registered in Income Tax Dept. Database, then you will see all the details entered by you along with the name associated with the PAN no. mentioned by you.
  • You can now verify the details and name. EDIT option is also provided by which you can correct your entered details.
  • Now click on SUBMIT button.
  • On successful submission you will receive nine digit alpha numeric Acknowledgement number
  • If you have forgotten to save your acknowledgement no.and  wish to know click here. You will see a screen as below screenshot.

TDS on Sale of Property

You are required to provide PAN no of buyer and seller, Total Payment and Assessment Year. Based on these values you will get your acknowledgement no.

You can also see acknowledgement no. in Form 26AS of the buyer (Annual Tax Statement)

  • You can make the payment in either by visiting the bank with the acknowledgement slip or you can make the payment online using E Banking facility.
  • If for online payment using net banking facility, click here.  You will see a screen like below screenshot: 

TDS on Sale of Property

  • Provide the PAN no. of buyer and seller, acknowledgement no. and assessment year. Type the text displayed and click on SUBMIT.
  • Verify your PAN before making the payment. If it is correct then click on CONFIRM button
  • Click on the option “Submit to Bank” wherein you have to select the bank from the list of authorized banks which provides E-payment facility. Click here to view the list of authorized banks. Screen will look like below screenshot: 

TDS on Sale of Property

  •  It will take to the selected bank’s website wherein you will be asked to type your Net Banking User Id and Password. Now select your bank account no., enter the amount to pay and make payment.
  • On successful payment, you will receive a challan counterfoil which shows your CIN, payment details, bank name through which payment has been made. This challan counterfoil acts as an acknowledgement no. for payment of taxes.
  • You can get a duplicate counterfoil by visiting bank’s website or by making a request to the bank.
  • If you get any problem anywhere in the above procedure then If you have any queries, you can also visit the FAQ’s page here
    • contact the TIN Call Center at 020- 2721 8080,
    • email at tininfo@nsdl.co.in (Subject the mail as Online Payment of Direct Tax)
  • Form 16B is the TDS certificate which a buyer issues to a seller. It shows the taxes deducted on the sale of property and deposited in the Government Account. This form is available on Centralized Processing Cell of TDS. Click here to download this form.

 Hope this post was useful to you. Please write to us in case of queries or suggestions.

The following two tabs change content below.

Abhinav Gulechha

SEBI RIA and Principal Financial Planner at M/s Soham Financial Planners
Abhinav is a SEBI Registered Investment Advisor (RIA) and the Principal Financial Planner at www.sohamfp.com, where he provides fee-only financial planning advice and mentoring to help families plan and organise their financial life and move confidently in direction of their life’s most important goals. By qualification, he is a Certified Financial Planner (CFPCM) and a Chartered Accountant (ACA), and has a 9+ years of industry experience. He regularly writes on his website as well as in reputed journals /industry magazines, and also serves as visiting faculty at a couple of FPSB India’s authorised education providers in Mumbai. He is also a member of The Financial Planners’ Guild, India (FPGI), an association of Practicing Certified Financial Planners.

{ 2 comments… read them below or add one }

manny April 26, 2014 at 9:14 pm

How to pay TDS in case of two buyers. While filling form 26QB for first buyer, I need to put total value of consideration for purchase, it asks to pay entire TDS for first buyer only. So what would second buyer pay. Do I need to specify only half consideration amount to pay in ratio of 50:50?

Reply

Abhinav Gulechha April 27, 2014 at 5:21 pm

Dear Manny

Yes, If more than one buyer or seller is there, then each needs to fill Form 26QB for unique buyer seller combination. Suppose there is 1 buyer and 2 sellers in that case, 2 forms needs to be filled.

Reply

Share your thoughts

{ 1 trackback }