In India, TDS on payment on the transfer of certain immovable property other than agricultural land will be applicable at the rate of 1% where the amount for the transfer of an immovable property is is Rs.50 Lakhs or above u/s 194IA.
TDS is not applicable if sale consideration is less than Rs 50 lakhs.
Things to know before filling the form
- PAN of the seller & buyer
- Communication details of seller & buyer
- Property details
- Amount paid/credited & tax deposit details
How To Pay TDS On Sale of Property Online?
1. Log on to TIN NSDL website ( www.tin-nsdl.com ).
2. Under 'TDS on sale of property', click on Form 26QB( "Online form for furnishing TDS on property)
3. Select the applicable challan as "TDS on Sale of Property".
4. Fill the complete form as applicable.
5. Submit the duly filled form to proceed.
A confirmation screen appears. After confirming, a screen appears showing two buttons as "Print Form 26QB" and "Submit to the bank".
A unique acknowledgement number is also displayed on the screen. It is advisable to save this acknowledgment number for future use.
Click on "Print Form 26QB" to print the form. Then click on "Submit to the bank" to make the required payment online.
6. On successful payment a challan counterfoil will be displayed containing CIN, payment details and bank name through which e-payment has been made. This counterfoil is proof of payment being made.
Once the process is done wait for 5 days and vist TRACES portal( www.tdscpc.gov.in) to download Form 16B.
Steps to Download Form 16B:
1. Login on TRACES portal ( www.tdscpc.gov.in) as taxpayer using your PAN.
2. Select "Form 16B (For Buyer)" under "Downloads" menu.
3. Enter the details pertaining to the property transaction.
4. Enter the Assessment Year, Acknowledgment Number, PAN of Seller and click on "Proceed".
5. A confirmation screen will appear. Click on "Submit Request" to proceed.
6. Please note the request number to search for the download request.
7. Click on "Requested Downloads" to download the requested files.
8. Search for the request with request number. Select the request row and click on "HTTP download" button.
Seller should note that TDS is deducted at 20% if Permanent Account Number is not submitted. PAN of the buyer is also mandatory.
TDS is deducted at the time of payment or at the time of giving credit to the seller, whichever is earlier.