How To Deduct TDS On Sale Of Rs 50 Lakh Property?

TDS (Tax Deducted at Source) on property in India refers back to the tax deduction made on the time of fee by the customer to the vendor for the sale of immovable property. The purchaser is required to deduct TDS on the fee of 1% of the sale consideration if the sale worth of the property is greater than Rs. 50 lakhs.

The TDS quantity deducted by the customer is then remitted to the federal government account and the vendor can declare credit score for a similar whereas submitting their earnings tax return. The TDS on property is ruled by Section 194-IA of the Income Tax Act, 1961.

What Is TDS On Property?

The Finance Bill 2013 has proposed that purchaser of an immovable property (aside from rural agricultural land) price Rs 50 lakh or extra is required to pay withholding tax on the fee of 1% from the consideration payable to a resident transferor

Who Is Responsible To Deduct The TDS On Sale Of Property?

According to guidelines in respect of tax deducted at supply, consumers of the property must deduct the TDS and deposit the identical within the authorities treasury.

I Am Buyer, Do I Require To Procure TAN To Report The TDS On Sale Of Property?

Buyer or Purchaser of the property is just not required to acquire Tax Deduction Account Number (TAN). The Buyer is required to cite his or her PAN and vendor’s PAN.

What is Form 26QB?

The on-line type out there on the TIN web site for furnishing data relating to TDS on property is termed as Form 26QB.

(*50*)What is Form 16B?

Form 16B is the TDS certificates to be issued by the deductor (Buyer of property) to the deductee (Seller of property) in respect of the taxes deducted and deposited into the federal government account.

How To File TDS On Sale Of Property: Steps To Fill Form 26QB:

• Go to TIN Protean (previously NSDL eGov) web site​ ( https://www.protean-tinpan.com/ ).​
• Under ‘TDS on sale of property’, click on on “Online type for furnishing TDS on property (Form 26QB)”
• Select the applicable challan as “TDS on Sale of Property”.
• Fill the entire type as relevant.
• User needs to be prepared with the next data whereas filling the shape 26QB:

-PAN of the vendor and purchaser

-Communication particulars of vendor & purchaser

-Property particulars

-Amount paid/credited & tax deposit particulars

• Submit the duly stuffed type to proceed. ​A affirmation display seems.
• After confirming, a display seems exhibiting two buttons as “Print Form 26QB” and “Submit to the bank”.
• A singular acknowledgement quantity can be displayed on the display. It is advisable to save lots of this acknowledgment quantity for future use.
• Click on “Print Form 26QB” to print the form. Then click on “Submit to the bank” to make the required fee on-line via web banking.
• Then proceed to the fee web page via the web banking facility of assorted banks.
• For checklist of approved banks, please refer https://onlineservices.tin.egov-nsdl.com/etaxnew/Authorizedbanks.html

On profitable fee a challan counterfoil will probably be displayed containing CIN, fee particulars and financial institution title via which e-payment has been made. This counterfoil is proof of fee​ being made.

• Proceed to the TRACES portal( www.tdscpc.gov.in) after 5 days to obtain Form 16B.

Steps to Download Form 16B:

• Register & login on TRACES portal ( www.tdscpc.gov.in) as taxpayer utilizing your PAN.
• Select “Form 16B (For Buyer)” under the “Downloads” menu.
• Enter the main points pertaining to the property transaction for which Form 16B is to be requested. Enter the Assessment Year, Acknowledgment Number, PAN of Seller and click on on “Proceed”.
• A confirmation screen will appear. Click on “Submit Request” to proceed.
• A hit message on submission of obtain request will seem. Please notice the request quantity to seek for the obtain request.
• Click on “Requested Downloads” to download the requested files.
• Search for the request with the request number. Select the request row and click on “HTTP download” button. ​​​​​

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