PAYMENT OF TDS ON SALE OF PROPERTY
Important points for making payment of TDS on sale of property are listed below:
Prerequisites: PAN of the buyer and the seller is mandatory to make e-payment of TDS on sale of property. The TAN (Tax Deduction Account Number) is not required to make this payment.
Due date: The due date of payment of TDS on transfer of immovable property is 30 days from end of the month in which the deduction is made.
Payment: TDS payment can be made by using the following link: https://onlineservices.tin. egov-nsdl.com/etaxnew/tdsnontds.jsp
Form 26QB: To make an online payment of tax from the e-tax payment option, the buyer is required to fill an online form, 26QB. PAN of the buyer and seller, details of the property, total consideration payable, and payment details must be furnished.
Form 16B: Once tax payment is made, Form 16B (TDS certificate to be issued by the buyer to the seller) can be downloaded from the website of Centralised Processing Cell of TDS (CPC-TDS) at www.tdscpc.gov.in
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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 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% or 0.75% should be deducted (depending upon the Date of Payment/Credit to the Seller) by the purchaser of the property at the time of making payment of sale consideration. Tax so deducted should be deposited to the Government Account through any of the authorised bank branches. According to rules in respect of tax deducted at source, buyer of the property would have to deduct the TDS and deposit the same in Government treasury.
IMPLICATIONS OF NON/LATE FILING OF TDS
STEPS TO FILL FORM 26QB
The Form 26QB challan has to be filled by each buyer for every unique buyer-seller combination for their respective share. For example, in the case of one buyer and two sellers, two forms have to be filled in. Similarly, if there are two buyers and two sellers, then four forms will have to be filled in.
According to rules in respect of tax deducted at source, buyer of the property would have to deduct the TDS and deposit the same in Government treasury.
As per section 234E of the IT Act, 1961 read with Rule 31A (4A) of IT rules, 1962, failure on the part of taxpayer to furnish challan-cum-statement in Form No. 26QB electronically within seven days from the end of the month in which the tax deduction is made will attract levy of fee to be paid by the buyer/transferee/payer.