How to make payment of TDS on sale of property.

1. ​1% withholding tax

The purchaser of an immovable property (whether built up or under construction) of value Rs.50 lakh or more has the responsibility under the Income-Tax Act, 1961, to pay withholding tax of 1% from the sale consideration payable to the seller of the property. This withholding tax must be deducted at source and deposited in the government’s account.

2. Due date

The due date of payment of TDS on transfer of immovable property is 30 days from end of the month in which the deduction is made.

3. Prerequisites

PAN of the buyer and the seller is mandatory to make e-payment of TDS on sale of property. The TAN (Tax Deduction Account Number) is not required to make this payment.

4. Link

TDS payment can be made by the buyer on the following link: https://onlineservices.tin. egov-nsdl.com/etaxnew/tdsnontds.jsp

5.​Form 26QB

To make an online payment of tax from the e-tax payment option, the buyer is required to fill an online form, 26QB. PAN of the buyer and seller, details of the property, total consideration payable, and payment details must be furnished.

6. Payment

TDS needs to be paid on the amount paid/payable to the seller. The buyer can make the payment using the e-tax payment option. The tax payment can be made on the net banking portal or by visiting authorised bank branches. Once the payment is made, an acknowledgement number is generated. On entering the acknowledgment details at a later date, one can generate the submitted Form 26QB for records.

7. Form 16B

Once tax payment is made, Form 16B (TDS certificate to be issued by the buyer to the seller) can be downloaded from the website of Centralised Processing Cell of TDS (CPC-TDS) at www.tdscpc.gov.in

8. Points to note

If the property transaction has more than one party as a buyer or seller, Form 26QB needs to be filled by each buyer for unique buyer-seller combination.

If the buyer faces any problem when filling the online form, he may contact the TIN Call Center at 020-27218080 or email at tininfo@nsdl.co.in The seller must verify deposit of taxes deducted by the Purchaser in Form 26AS Annual Tax Statement.

The buyer must

The buyer must not commit any error in quoting the PAN or other details in the online Form as there is no online mechanism for rectification of errors. For rectification, he/she will have to contact the tax department.