How to Make TDS Payment on Property Sale

The buyer of an immovable property (whether it is of under construction or build-up) of the value of Rs.50 Lakh or more is responsible of paying a withholding tax of 1% from the sale through the sale consideration that is payable to the property’s seller under the Income Tax Act.

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This withholding tax should be deducted at the source and has to be deposited in the government account according to the laws of the income tax.

  • The Due Date: The payment due date of TDS upon transfer of immovable property is one month from the month-end in which the deduction is being made.
  • Link: The payment of TDS can easily be made by the purchaser on the following link: https dot // onlineservices dot tin dot egov-nsdl dot com /etaxnew/ tdsnontds dot jsp
  • Prerequisites:PAN number of the seller and buyer is required to make TDS e-payments upon property’s sale. The Tax Deduction Account Number (TAN) is not needed for making this payment.
  • Payment: The TDS should be paid on the amount that is paid or payable to the seller. The purchaser can easily make the payments by using the option of e-tax payment. The payment of the tax can be made through the portal of net banking or by going to the authorized branch of the bank. As soon as the payment is made, acknowledgment is generated. Upon entering the required details of acknowledgment even on a later date, one can get or generate a 26QB form that was submitted.
  • 26QB Form: For making online tax payments through the e-tax payment option, the taxpayers are required to fill an online form that is 26QB. Property details, PAN of seller and buyer, payment details, and total consideration that is payable should be furnished.
  • Form 16B: Upon tax payment, Form 16B (Certificate of TDS to be provided by the purchaser to seller) can easily be downloaded through the CPC – TDS (Central Processing Cell of TDS) website at www.tdscpc.gov.in.

Points to Be Remembered by the Property Buyer

  • Through the sale consideration, deduct the cash at 1%.
  • If the transaction of the property has more than one party as a seller or buyer, then 26QB Form should be filled by every purchaser for a unique seller-buyer combination.
  • If the purchaser has any problem during online form filling, he/she may contact the call center of TIN at 020 – 27218080 or he/she can email @: tininfo@nsdl dot co dot in
  • Purchaser and seller PAN.

 Points to Be Remembered by the Property Owner

  • The owner needs to provide his/her PAN to the property purchaser to furnish information related to TDS to the department of the Income Tax.
  • Verify the taxes deposited by the buyer in the Form 26AS Annual Tax Statement.

Steps for Filling 26QB Form

  • Visit the website of TIN NSDL (www dot tin-nsdl dot com)
  • In the head ‘TDS on sale of the property’, select and click ‘Online form for furnishing TDS on property’ (26QB Form)
  • Choose the required challan mentioned under ‘TDS on Sale of Property’
  • Fill the full form as required (The user should have the below information during 26QB Form filling):
    • Seller and buyer’s PAN
    • Seller and buyer’s communication details.
    • Details of property.
    • The amount credited or paid and the deposited tax.
  • Submit the form and make sure it is filled. A screen of conformation appears thereafter. This screen has two buttons – ‘Submit to the Bank’ and ‘Print Form 26QB’. A unique number of acknowledgments are shown over the screen. One is recommended to save the acknowledgment number for further use.  Click on the option saying print the 26QB form for printing this form. Now click ‘Submit to the Bank’ to make necessary payment online via internet banking. Proceed further to visit the page and complete the payment through the facility of internet banking of different banks.
  • Upon successful payment of the challan, a counterfoil is displayed that contains CIN, bank name, and payment details of the bank through which the e-payments are made. The counterfoil is proof that the payment is made

Note: To download Form 16B, visit www dot tdscpc dot gov dot in (TRACES) after five days.

Steps for Downloading Form 16B

  • Register and then log in to the portal of TRACES (www dot tdscpc dot gov dot in) in the form of a taxpayer by using your details of PAN.
  • Under ‘Downloads’ head as a buyer select ‘Form 16B’.
  • Enter all the details related to the transaction of property that requires Form 16B. Provide the AY, Seller's PAN, Acknowledgement Number, and then click 'Proceed'.
  • A screen of confirmation appears. Click ‘Submit Request’ for proceeding further.
  • A message of success appears upon download request submission. It is suggested to note down the request no for searching the request of download.
  • Click ‘Requested Downloads’ for downloading the request files.
  • Search the request through request no. Choose the row of request and click the ‘HTTP download’ button.

Helpful Resources: Online Tax Calculator

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*Tax benefit is subject to changes in tax laws. Standard T&C Apply
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
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