TDS on Property

By | July 30, 2016
What is TDS on property?The Finance Bill 2013 has proposed that purchaser of an immovable property (other than rural agricultural land) worth Rs 50 lakh or more is required to pay withholding tax at the rate of 1% from the consideration payable to a resident transferor.
Who is responsible to deduct the TDS on sale of Property?According to rules in respect of tax deducted at source, buyer of the property would have to deduct the TDS and deposit the same in Government treasury.
Does buyer require to procure TAN to report the TDS on sale of Property?Buyer or Purchaser of the property is not required to procure Tax Deduction Account Number (TAN). The Buyer is required quote his or her PAN and sellers PAN.
What if buyer doesn’t have the PAN of the seller, is it Mandatory?PAN of the seller is mandatory. The same may be acquired from the Seller before effecting the transaction.
How can one use this facility to pay TDS on sale of Property?

The Buyer of the property (deductor of tax) has to furnish information regarding the transaction online on the TIN website. After successfully providing details of transaction deductor can:

  • Either make the payment online (through e-tax payment option) immediately;
  • Or make the payment subsequently through e-tax payment option (net-banking account) or by visiting any of the authorized Bank branches. However, such bank branches will make e-payment without digitization of any challan. The bank will get the challan details from the online form filled on
If one encounter any error on NSDL site while entering the online form details what should he/she do?If any problem is encountered at the NSDL website while entering details in the online form then contact the TIN Call Center at 020 – 27218080 or write to us at (Please indicate the subject of the mail as Online Payment of Direct Tax).
What is Form 26QB?The online form available on the TIN website for furnishing information regarding TDS on property is termed as Form 26QB
I have filled Form 26QB and made the payment online, but I forgot to save the Acknowledgment No. generated at TIN website. From where can I get the Acknowledgment No.?a) Acknowledgment number for the Form 26QB furnished is available in the Form 26AS (Annual Tax Statement) of the Deductor (i.e. Purchaser/ Buyer of property). The same can be viewed from the TRACES website ( or
b)Taxpayer can also click the option ‘View Acknowledgment’ hosted on the TIN website. Taxpayer needs to enter PAN of the Buyer and Seller, Total Payment and Assessment Year (as mentioned at the time of filing the Form 26QB) to retrieve the Acknowledgment Number.
From where can you print the Form 26QB if you forgot to print while making the payment online?You may access the access the link “E-tax on subsequent date” on the TIN website. On entering the details as per the acknowledgment slip, you will be provided options to Print the Form 26QB.
 What is Form 16B?Form 16B is the TDS certificate to be issued by the deductor (Buyer of property) to the deductee (Seller of property) in respect of the taxes deducted and deposited into the Government Account.
From where will you get the Form 16B?Form 16B will be available for download from the website of Centralized Processing Cell of TDS (CPC-TDS)
Can I make Cash/ Cheque payments  for the TDS at Banks?Buyer may approach any of the authorized Bank Branch to facilitate in making e-payment.
If buyer has filled Form 26QB before TDS payment and has selected the option e-payment at subsequent date then how the payment made thereafter within the permissible period would be matched in the 26QB?E-payment of taxes at subsequent date will be linked to the FORM 26QB based on Acknowledgement number generated at the time of filing of Form 26QB.
How will transactions of joint parties (more than one buyer/seller) be filed in Form 26QB?Online statement cum challan Form/ Form 26QB is to be filled in by each buyer for unique buyer-seller combination for respective share. E.g. in case of one buyer and two sellers, two forms have to be filled in and for two buyers and two seller, four forms have to be filled in for respective property shares.
What is Fee in Form 26QB and when is it applicable?As per section 234E of the IT Act, 1961 read with Rule 31A (4A) of IT rules, 1962, failure on the part of taxpayer to furnish challan-cum-statement in Form No. 26QB electronically within 30 days from the end of the month in which the tax deduction is made will attract levy of fee to be paid by the buyer/transferee/payer.
How to make tax payment towards Fee in Form 26QB?Provision to enter Tax amount (comprising of basic tax, interest and fee) in Form 26QB is given in TIN website and Bank’s site.
If anyone has entered tax amount in Fee and unable to generate Form 16B from TRACES website?The TDS amount as per Form 26QB should be entered in the field ‘Basic Tax’ (Income Tax) on the Bank’s web-portal as TDS certificate (Form 16B) will be based on ‘Basic Tax’ (Income Tax) only.

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