Easy Process to Pay TDS on Property Purchases > 50 Lakh

Arpit Kulshrestha

6 years ago

If any person is responsible for paying any amount to the resident owner who wants to sell the resident by any means of payment for transferring a fixed property (i.e., building or part of a building or any land other than agricultural land) under Section 194-1A, he is likely to deduct tax at source.

According to this section, the seller must not pay the TDS but the buyer has to. The tax must be deducted during payment or credit, whichever comes earlier. From the total sale payment, 1 per cent of TDS must be deducted and if PAN is not issued by the deductee then 20% of TDS must be deducted. If the payment paid or payable for the transfer of a fixed property is less than Rs 50 lakh no tax is deducted.

Through the NSDL website, the online payment of TDS can be made via challan cum statement on Form 26QB. Via any of the authorized bank branches, the tax deducted should be deposited to the government account using the e-Tax payment which is available at NSDL. Within 30 days from the last of the month in which the TDS was deducted, the deducted TDS must be paid.

Step-by-Step Process: Online TDS Payment for the Purchase of Property

Login to NSDL-TIN website (www.tin-nsdl.com) or click the given link
https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp
Under TDS on the property, click Form 26QB and if you are a corporate payer select 0020 or select 0021 if you are a non-corporate payer.
From the drop-down, select the financial year for which the payment is to be done; select the tax applicable for which the payment is to be done, mention the PAN of the buyer and seller; re-enter the PAN of the buyer and seller; provide the complete address of buyer and seller and address of the property transferred.
Mention the date of agreement/booking of property, and total value, mention if the above payment is made in combined sum or in instalments.
Enter the TDS rate and the TDS amount to be paid.
If all the above details including the name displayed are correct, then click on the ‘Submit’ button.
Click on ‘Edit’, if you have made any mistake.
Choose any of the modes of payment which is given at the bottom of the page- e-tax payment immediately (through net banking) or e-tax payment on the subsequent date.
If you choose net banking, log in to your bank account and pay online. On successful login, enter payment details at the bank site.
On successful payment, a challan counterfoil which is the proof of payment being made will be displayed containing CIN, payment details and bank name through which e-payment has been made.
If you select e-tax payment on the subsequent date, then an online receipt is generated with a unique acknowledgement number which is valid for 10 days after generation. For payment through the bank, this receipt must be taken along with the cheque to an authorized bank for payment.
The TDS certificate must be issued to the deductee in Form 16B within 15 days from the due date of the deposit of TDS.
The deductee must qualify to avail the credit for the full amount of TDS deducted during the fiscal year in its return of income.
If in case, the property is partially financed by the bank then the TDS will be required to be deducted by the transferee on the entire amount of payment.