How To Pay TDS On Property Purchase Online?

Whenever there is a transaction of any sum for the purpose of transfer of ownership of an immovable property like a building, a part of a building or land other than agricultural land, then the buyer in the said transaction is liable to pay Tax Deducted at Source according to Section 194-IA. In simple words, when someone buys a property from a seller, then they’re liable to pay a tax on it if the cost of the property is more than Rs. 50 lakh.

The onus of TDS payment lies on the buyer and not the seller. It is the buyer who must deduct the TDS and make the payment to the income tax department.

The tax rate for property purchase is 1% of the total sale amount if the deductee furnishes their Permanent Account Number (PAN) . If, however, the deductee does not furnish their PAN, then the rate of TDS shall be 20% of the sale amount. No tax is applicable if the property sale is less than Rs. 50 lakh.

Now anyone can pay TDS for property purchase online via the NSDL website by filling the challan-cum-statement on Form 26QB. Payment can be done across many authorized bank branches using the E-Tax payment gateway on the NSDL website. Do note that any liable TDS on property purchase must be paid within 30 days from the end of the month in which the TDS was originally deducted.

- Log on to the NSDL portal for tax payment by clicking here .- Scroll down and click on ‘TDS on Property (Form 26QB)’ on the lower left region of the page.- You will then be directed to the Form 26QB where you can enter all details accurately.- You must choose 0020 if you’re a corporate payer or 0021 if you’re a non-corporate payer in the form.- Proceed by entering all required details like PAN of buyer and seller, address of buyer and seller and address of the property in question.- After you click next, you may fill the second page of the form with all property details like property value, date of agreement, method of payment, TDS rate applicable and TDS amount.- Once you correctly enter all the particulars, you can proceed to pay by E-Tax payment immediately online or at a later date by visiting a bank.- Once you choose to pay immediately, you can pay the TDS amount via net banking the usual way.- Once the payment is confirmed, a challan will be generated that will act as a proof of payment.

In this way, you can very easily do the TDS E Payment on the NSDL website completely online.
After the payment, it is mandatory to issue the TDS certificate to the deductee via Form 16B within 15 days from the due date of deposit of TDS. The deductee will be entitled to avail credit for the entire amount of TDS deducted during the financial year in their IT filing.

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.