Pay TDS on property online
The e-payment facility for TDS on property involves 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 TIN-NSDL.
Steps to pay TDS on property online
Follow the below steps to pay TDS on your property online.
Step 1: Fill form 26QB online
- Before depositing the payment fill form 26QB, available on the TIN-NSDL website
- The form is similar to the form available to pay Tax Deducted at Source from income tax on sale of land
- Provide details such as PAN, addresses of buyer and seller, property address property, date of sale agreement, and property value
Step 2: Confirm the e-payment
- Upon confirmation, the TDS amount will be deducted electronically from your bank
- You can schedule the payment for a later date
- Receive a 9-digit alpha-numeric acknowledgement number upon payment confirmation
- Obtain a challan with a unique CIN and payment and bank details
Step 3: Download form 16B
- As a seller, download form 16B from the official website of Centralised Processing Cell of TDS
- The buyer must submit the certificate of TDS to you (seller) within 15 days from the due date of submission mentioned on the challan
Follow the above-mentioned steps, to pay TDS on property online. After receiving the certificate of Tax Deducted at Source, you, as a seller, will be eligible to claim credit for TDS on a 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 1 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?
Frequently asked questions
To pay TDS through Form 26QB with an acknowledgment number follow the below steps:
- Visit TIN NSDL website
- Select "Challan 26QB" and provide details
- Verify and click "Proceed”
- Choose the bank
- Log in to your bank account
- Make the payment and save the receipt
The responsibility for depositing TDS on property transactions in India falls on the buyer. The buyer must deduct TDS at a specified rate (typically 1%) from the payment to the seller, complete Form 26QB, and deposit the TDS with the government using their TAN. An acknowledgment receipt is generated as proof of TDS deposit. Sellers should ensure correct TDS deduction and can claim the TDS amount when filing their income tax return. Rules and rates may change, so it is crucial to verify the latest regulations with tax authorities or consult a tax professional for up-to-date information.
When there are two buyers for a property, both buyers are jointly responsible for paying TDS (Tax Deducted at Source). You can follow the below steps to pay the TDS:
- Calculate the total TDS amount based on the property transaction value and applicable rate
- Collect PAN and other details from both buyers
- Divide the TDS amount according to a mutually agreed-upon proportion
- Fill out Form 26QB with details of both buyers and their PANs
- Make the TDS payment with the divided amount
- Retain the acknowledgment receipt for records
- File TDS returns with both buyers' information
- Inform the seller about the TDS deduction
