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According to section Section194-IA, whenever there is any purchase of an immovable property like a building, part of a building or land that is not agricultural land, then a tax deducted at source (TDS) is applicable to be paid to the government if the purchase amount is Rs. 50 lakh or more. The responsibility of paying this tax lies with the buyer who can deduct the tax from the total purchase amount and deposit the same with the Income Tax department. This payment can be easily done online but may also be done by visiting an authorized bank.Here are 5 important things you must know before you make a TDS E-Payment:
1) Where Can The Payment Be Done?
TDS E Payment on property purchase can be done online at the NSDL portal. Given below is the link for the same: onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp Once you click on the link, you will be redirected to the Tax Information Network website. Here you can select the option ‘TDS on Property (Form 26QB)’ and proceed with filling the form to pay your TDS.
2) What are the details required on Form 26QB?
On the NSDL portal, you have to fill Form 26QB in order to pay TDS. This requires you to enter details like purchase value of property, percentage of TDS applicable, TDS amount, address of property, address of buyer and seller, PAN of buyer and seller, and other particulars.
3) If there are joint buyers or sellers.
Sometimes a property may be jointly owned or jointly purchased. In such a scenario, each party involved must fill a separate 26QB form and must mention their percentage share of the property.
4) How to make the TDS payment?
Once the form is filled, the buyer can then make the TDS payment. There are two options for TDS payment. The buyer can either choose to pay immediately via the online gateway, or they can also choose to pay at a later date. The immediate payment can be done via netbanking for any of the included banks. A subsequent payment can be done by producing the online receipt in an authorized bank along with the TDS payment via cheque.
5) Additional points to remember
- The buyer of the property is not required to procure a TAN or TDS Account Number to pay TDS.- The TDS rate is 1% of the purchase amount for buyers who will furnish PAN. For those buyers who do not furnish PAN, the TDS rate for property is 20% of the purchase amount.
Conclusion
The income tax department has made it easy to make the TDS payment for property purchase on their online portal. So, if you’re planning to purchase a property, then make sure you pay the TDS amount online and follow our tips. Also, make sure to issue the TDS certificate to the deductee within 15 days of the due date for TDS deposit.Ready to make the most of your money? Start your tax planning journey now!
DISCLAIMER
The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
