How can You Pay TDS on Property Online?

The e-payment facility for TDS on property is a hassle-free process that allows you to pay the necessary amount from your bank account. However, to use this facility, you should have the net-banking feature activated on your account. The account should also be associated with authorised banks as mentioned in the official website of NSDL-TIN.

Once completed, you can follow the below mentioned steps to pay your taxes on property online.

  • Step 1 – You can fill up Form 26QB online before depositing the payment. The form will be available in the NSDL-TIN website, and it is similar to the form available to pay Tax Deducted at Source from income tax on sale of land. You will have to enter certain details while filling the form; these include PAN details, complete address of both the buyer and the seller, address of the property, date of sale agreement, and the value of the property.
  • Step 2 – The TDS amount will be transacted electronically from your bank after you confirm the e-payment. You can also schedule the payment for a later date. You will find a 9-digit alpha-numeric acknowledgement number upon payment confirmation. It will also generate a challan with a unique CIN, payment and bank details.
  • Step 3 – As a seller, you will have to download Form 16B from the official website of Centralised Processing Cell of TDS. It will be the buyer’s responsibility to submit the certificate of TDS to the seller within 15 days from the due date of submission mentioned in the challan.

After receiving the Certificate of Tax Deducted at Source, you, as a seller, will be eligible to claim credit for TDS on property purchase above Rs. 50 Lakh against tax liability after submission.

As a seller, you can also claim TDS rebates on your residential property when you file your income tax returns. Moreover, if your property was acquired before 1st June 2013, you will not have to file Form 26QB while paying Tax Deducted at Source when selling it.

Additional Read: What is Property Tax?