TDS means Tax Deducted at Source is an amount that is reduced when a specific payment like salary, commission, rent, interest, professional fees, etc., is deposited or made to someone. The person or Deductor who makes the payment deducts tax at the source before proceeding with the payment deposit; the person who receives the payment/income has the liability to pay the tax that is deducted on behalf of them by the deductor.

As stated in the 2013 Finance Bill, TDS on sale of property is applicable on sale of an immovable property where the consideration of the sale of the property is more than Rs. 50,00,000  or equal to Rs. 50,00,000 (Fifty Lakh Rupees). Sec 194 IA of the Income Tax Act, 1961 states that for all transactions of sale of property, Tax @ 1% should be deducted by the purchaser/buyer of the property at the time of making payment of sale consideration or credit of such amount in books. TDS deducted should be deposited to the Government Account through any of the authorized bank branches by the deductor.

The buyer of the property is responsible for deducting TDS on sale of property and depositing it in the government treasury within the stipulated time.

No, TAN (Tax deduction Account Number) is not needed to deduct tax on sale of the property. Only Buyers PAN and Sellers PAN is/are required.

No, TAN (Tax deduction Account Number) is not needed to deduct tax on sale of property. Only Buyers PAN and Sellers PAN is/are required to file TDS form 26Q under Section 194IA of the Income Tax Act.

Yes, PAN of seller and buyer is mandatory for processing of TDS on sale of property. Seller's PAN details must be acquired before processing to file TDS on property & Buyer must have a PAN number to file Form 26QB.

TDS on sale of property can be filed at the TIN-NSDL website under TDS on sale of property by furnishing form 26 QB and making payment of the amount due as TDS, i.e., 1% of Sale consideration.

Form 26QB is a challan-cum-statement to file TDS on sale of property under section 194IA of the Income Tax Act 1961. Form 26QB is filed by buyers with details for payment of TDS challan by authorized banks.

a) Acknowledgement number for the form 26QB filed can be viewed the form 26 AS( Annual Tax Statement) of the Deductor, i.e Buyer of the property. To view it, or can log into the TRACES website (www.tdscpc.gov.in)

or

b) Taxpayers can also click the option ' View Acknowlwdgement' as on the TIN NSDL portal. The taxpayer needs to enter the PAN of the Buyer and PAN of the Seller, Total Payment done, and Assessment Year(as mentioned at the time of filing the Form 26QB) to retrieve the Acknowldedgement Number.

Form 16B is a certificate under section 203 of the Income Tax Act, which certifies the details of tax deducted at source on sale of property after successful filing of form 26QB challan-cum-statement and deposit of tax is made in the government treasury.

Certificate of TDS Form 16B can be generated after filing Form 26QB from the TRACES website by registering as a taxpayer and entering acknowledgement details and other details as required. Once it is submitted under requested downloads, you can check your form 16B generated and download it.

TDS on sale of property is deducted when sale consideration is Rs. 50 lakhs or more. TDS is deducted on the whole amount of sale consideration, not on the part of the consideration over and above Rs. 50 lakhs.

No, If your bank is not in the authorized bank list or has no option of net banking services, the buyer may approach any other authorized bank branch to make the e-payment of taxes.

To make the payment through e-tax payment subsequently (net banking account), you may access the option  'Payment of TDS on property" on the TIN-NSDL website. On filling in the details as per the acknowledgement slip, you will be provided with an option to submit to the bank where you have to select the Bank through which you desire to make the payment (make sure your bank is an authorized bank). You will be taken to the net banking login screen, wherein you can make the payment online of TDS on property.

Form 26 QB must be filed separately for every unique transaction of sale of property. i.e., if there is one buyer and two sellers, two forms will be filed & if there are two buyers and a single seller, then two Form 26QB will be filed with the respective share of amount of each individual in form 26QB filed for them.

Form 16B will be generated after a few days of filing form 26QB. You will get your form 16B as and when it will be available for download in the TRACES portal.

TRACES means TDS Reconciliation Analysis and Correction Enabling System, which is a facility provided by the Income Tax Department at www.tdscpc.gov.in. The objective of this facility is to view taxes paid online and enable both payers and deductors of TDS to reconcile them for purposes of filing returns and seeking refunds.

After deduction and payment of challan of TDS as a taxpayer or deductor, you can register as a new user at TRACES after a few days.

• Go to the TIN NSDL Website and Select TDS on Sale of Property from Services.
• Click on the Online form furnishing TDS on property (Form 26QB).
  
• A new window will open with templates select “TDS on Property (Form 26QB).
• Enter all the details in relevant sections as applicable.
• Submit the duly filed form to proceed.
• A confirmation window will appear.
• Now you can print form 26QB, and payment of TDS can be made.

There is a list of authorized banks in the TIN NSDL portal; you can check it from there if your bank is listed as authorized or not.

As a seller, you should provide your PAN details and address proof to the buyer(s) for filing TDS on sale of property. Also, check your 26AS form to see whether the TDS deposited is being reflected correctly and matched with form 16B.

Required Documents for TDS on Property:-

• Personal Details- Mobile no., E-mail.
• Aadhar Card of Buyer (Buyers in case of more than one).
• PAN card of Buyer (Buyers in case of more than one).
• Bank A/c Details.
• Address proof of Buyer (Buyers in case of more than one).
• Sale Deed or Sale Agreement Details with Sale Consideration.
  
• Address of the Property Transferred.
  

Penalty on non-deduction is interest on the total amount of TDS, i.e., interest shall be levied @1% for every month or part of the month from the date on which TDS was chargeable till the date on which TDS is actually deducted.

CIN means Challan Identification Number in TDS. It consists of Bank BSR details, Challan Serial No., Challan Date Etc.

TDS needs to be deposited by the 30^th of next month from the date on which it was deducted. For example – If the TDS deduction was made on the 15^th of June, TDS on sale of property must be paid and filed by the 30^th of July.

Form 26 AS is a tax credit statement where all the taxes paid by or TDS deducted and paid on behalf of an assessee is reflected here. Form 26AS is linked to the PAN of the assessee.