Know all about-TDS on Immovable Property transaction

Effective from 1st June 2013, TDS (Tax Deducted at Source) will be applicable on the buying of immovable property valued Rs.50, 00,000 or more. So let us know what is the procedure and who are responsible to deduct TDS.

This TDS will be applicable while buying any immovable property, but other than agricultural land worth Rs.50 lakh or more. TDS required to be deducted is 1% of sale consideration. Buyer of the property will be responsible for deducting this TDS and deposit the same in Government treasury. According to Sec 194 IA of the Income Tax Act, 1961 all transactions with effect from June 1, 2013, Tax @ 1% should be deducted by the purchaser of the property at the time of making payment of sale consideration. Tax so deducted should be deposited to the Government Account through any of the authorized bank branches.

Let us see few points which buyer or seller need to remember related to TDS on Property.

  • Responsibility of TDS lies with the buyer but for this TDS you don’t need to have TIN (which is the normal case with any TDS deductor). Recoganization will be through the PAN number of buyer and seller.
  • PAN of the seller is mandatory now. So without which one can’t buy the property.
  • Buyer of the property needs to submit information related to a transaction online on the TIN Website
  • Biggest task lies in verifying the PAN details of the buyer and entering correct data online. As of now there is no way to correct the error you do while filling online, but to personally visiting the Income Tax Department and rectifying the same.

How buyer can deposit the TDS?

Tax so deducted should be deposited to Government account through any of the authorized bank branches using e-Tax payment option on TIN Website. To pay online one need to have a net banking facility of any authorized banks.

Authorized Banks to accept TDS Payment U/s. 194IA

  1. Allahabad Bank
  2. Andhra Bank
  3. Axis Bank
  4. Bank of Baroda
  5. Bank of India
  6. Bank of Maharashtra
  7. Canara Bank
  8. Central Bank of India
  9. Corporation Bank
  10. Dena Bank
  11. HDFC Bank
  12. ICICI Bank
  13. IDBI Bank
  14. Indian Bank
  15. Indian Overseas Bank
  16. Jammu & Kashmir Bank
  17. Oriental Bank of Commerce
  18. Punjab and Sind Bank
  19. Punjab National Bank
  20. State Bank of Bikaner & Jaipur
  21. State Bank of Hyderabad
  22. State Bank of India
  23. State Bank of Mysore
  24. State Bank of Patiala
  25. State Bank of Travancore
  26. Syndicate Bank
  27. UCO Bank
  28. Union Bank of India
  29. United Bank of India
  30. Vijaya Bank

Their two ways to deposit the tax so deducted

1) Paying through e-Tax payment option immediately-To avail this facility, buyer need to have a net – banking facility of the any of the above banks to pay it online at TIN Website will direct you to net banking once the necessary information are furnished.

2) Payment of TDS subsequently-Means you can furnish the details online on TIN Website but you can deposit amount afterwards either through net banking facility or personally visiting the branches of the above said banks. If you don’t have net banking facility, then you personally need to visit the above listed bank branches and banks will get Challan details from online form filled by the buyer on TIN Website. Once this payment process completed, then the buyer will receive the acknowledgement called Challan Identification Number (CIN). You can verify the status of the Challan  in the “Challan Status Inquiry” at the TIN Website after a week of making payment.

Detailed steps of furnishing the TDS details are available Here.

What is Form 26QB?

Form available online on the TIN Website to download which is used to for furnished information regarding TDS on property.

What is Form 16B?

It is the TDS certificate issued by deducted (in this case buyer of property) to the deductee  (in this case seller of the property) related to tax deducted and deposited into the Govt Account. This form will be available for download from website Centralized Processing Cell of TDS (CPC-TDS)

6 thoughts on “Know all about-TDS on Immovable Property transaction”

  1. Sir I have purchased flat and applied for advance but status under process for many days can I take advance twice for construction of House

  2. I have erroneously mentioned date of payment/ credit made and date of tax paid in form 26QB. Is there any way I can correct it. Also the pin code of the property is wrongly input. Please guide me on the correction process.

  3. my sellers lands is in name of their defunc company now they donot have PAN NO of company can they use their personl PAN no while selling and can I issue TDS certificate in their names as bankers want to release payment in their companies name only

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