Date of communication : 05/03/2016

Dear Buyer of Immovable Property, PAN (XXXXXXXXX),

As per the information received in Annual Information return (AIR) through Registrar/Sub-registrar, you have executed transaction for Purchase of Immovable Property exceeding Rs. 50 Lakhs (Rupees Fifty Lakhs) during Financial Year 2014-15. However TDS Statement in Form 26QB has not yet been filed by you. In this regard, your urgent attention is invited to the following, with respect to filing of TDS Statement in Form 26QB and Issuance of TDS Certificates in Form 16B downloaded from TRACES.

1. Mandatory Filing of Form 26QB:

As per Finance Act of 2013, TDS is applicable on transfer of immovable property, wherein the consideration of the property exceeds or is equal to Rs 50 Lakhs. Sec 194 IA of the Income Tax Act, 1961 read with Rule 30, 31 & 31A of Income Tax Rules states that:

(a) For all such 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.

(b) Tax so deducted should be deposited to the Government Account through e-tax Payment option (Netbanking) or any of the authorised bank branches. Any sum so deducted under section 194-IA shall be required to be paid to the credit of the Central Government within a period of seven days from the end of the month in which the deduction is made.

(c) PAN of seller as well as Purchaser should be mandatorily furnished in an online Form (Form 26QB) for furnishing information regarding the property transaction. Facility for furnishing information regarding the transaction of sale of immoveable property and payment of TDS thereof is available on the website www.tin-nsdl.com.

(d) TDS certificate in Form 16B is required to be issued by the Buyer of property to the Seller, in respect of the taxes deducted and deposited into the Government Account. Form 16B will be available for download by Registering on the website of Centralized Processing Cell (TDS) www.tdscpc.gov.in.

2. Issuance of TDS Certificates in Form 16B downloaded from TRACES:

It is mandatory for all buyers to issue TDS certificates after generating and downloading the same from TRACES, “TDS Reconciliation Analysis and Correction Enabling System”(www.tdscpc.gov.in). The TDS Certificates downloaded only from TRACES Portal will hold valid.

3. Implications of Non/Late filing of TDS Statements:

For Buyer of Property: In case of default on account of Non / late filing of Form 26QB, a fee shall be levied u/s 234E of the Act. He shall be liable to pay, by way of fee, a sum of Rs. 200 (two hundred) for every day during which such failure continues. The buyer would also be liable for defaults of Late Deduction, Late Payment and Interest thereon. Penalty under S. 271H may also be levied on him by the Assessing Officer.

For Seller of Property: Non/ Late filing of Form 26QB results into the TDS Credit not being available to the seller for claiming the amount of tax already deducted from the payments made.

In case of any clarification/suggestion, you may write to us on (info@tdscpc.gov.in). Please click the links for any assistance on Filing 26QB, Downloading Form 16B or call our toll-free number 1800 103 0344.

CPC (TDS) is committed to provide best possible services to you.

CPC (TDS) TEAM

(Source- Letter issue by CPC (TDS)  to Property buyer for non submission of 26QB)

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Posted Under

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Tags : Section 194IA (36)
  • DINESHKUMAR BARAIYA

    Dear Sir,
    i have sold a house on 30.03.2015 by Rs.61,50,000/- joint with my wife @50 % share of her and seller are also in joint with 2 part please guide me am I liable to deduct TDS and filled 26 QB on the above property ?

  • CA. M. Lakshmanan

    It seems that the Sub Registrars are not informed about this provision and hence the purchasers are not deducting tax, which results in payment of tax with interest at a later date after receipt of notice from I.T Department. Complications arises if by the time the seller has filed the return of income, he would not part with deductible amount and finally the TDS burden may fall upon the purchaser. To avoid such a situation the Sub Registrars should not register the document till he is satisfied that TDS made by the purchaser.

  • Ramesh Kumar Thakur

    I think that how the concerning registrar allow the purchase / sale without any hesitation and without asking a single word from the both side, — how may purchaser or seller aware the law. if any default arises from any side —- the Registrar should be responsible.

  • HITEN RAMBHIYA

    SUCH TYPE OF NOTICE RECD IN CASE WHERE AGREEMENT IS REGISTERED PRIOR TO 1.6.2013

  • Bhavin

    I had purchased a property in 2013 and the rule is also in place in April 2013. So not aware of such rule, now what is the way out to submit the tax and close the issue? Is there anyway to get waiver for late payment / penalty?

  • S K Sharma

    I have been purchased a Flat for the consideration of Rs. 90 Lacs in March 2015. I was forgot to deduct TDS on that transaction. Total amount paid to seller, and documents registered. Now I have received an intimation from CPC-TDS to deposit TDS. The Seller not co-operate me. He has been filed his IT Return for A.Y. 2015-16 and declare sold property in his return. Can I get his ITR copy, Computation of Income and make certificate from C.A. and submit it to department against non payment of TDS. Please reply as early as possible.

  • Saloni Choudhary

    I found a very useful and informative Article on this topic on TaxGuru, I got answer of my all questions related to this topic. I was searching the answer from last two months on Google, after visiting more than 100 web page this week i found this article which is very informative and covered all most every thing regarding this topic in simple words. Hopefully you will also get your Answer from following Article :

    http://taxguru.in/income-tax/notices-related-tds-immovable-property-purchase.html

    I got my answer after wasting 2 months time. So i think to share it to all of you and trying to post in every article where i visited in last two months.

  • Bhavesh Agarwal

    Hi friends,

    Please help me with some queries regarding 1% TDS on property (apartment), details below

    Apartment Sale and Construction Agreement date: 07 June 2015

    Total consideration value (sale+construction): more than 50L

    First owner: wife. Second owner: myself (same in home loan account also). I am contributing to all the payments (100%) to the builder and SBI loan EMIs.

    1st SBI Home loan disbursal: 18 September 2015 (FY 2015-16)

    2nd (and last till now) SBI Home loan disbursal: 11 May 2016 (current FY 2016-17)

    Apart from SBI Home loan disbursals, multiple NEFT payments done from May 2015 to May 2016 from my and my friend’s/family bank accounts to the builder’s current account.

    No TDS paid till date because of unawareness (no form 26QB filled)

    Query regarding filling Form 26QB for TDS on property:

    1. What amount should I mention in wife’s form 26QB as she is not paying any amount. Still 50:50? Or I am ok to mention all the amount in my form 26QB only and skip even filling the wife’s form 26QB?

    2. Can I mention the total amount paid to the builder till 11 May 2016 as one lumpsump amount to avoid penalties in form 26QB, I was unaware of this rule and just got to know about it when 70%-80% amount is already paid to the builder? Is there any way I can skip paying penalties here?

    My apologies for the long post.

    Thanks in advance,

    Bhavesh