• Sep
  • 18
  • 2013

TDS payment on property and how to obtain form 16B and 26QB

Posted In Income Tax | | 17 Comments » Print Friendly and PDF

CA Rahul S Dharne

CA Rahul S DharneFrom June 2013, purchaser of property with value of Rs50 lakh and above should deduct 1% TDS at the time of making payment. Here is the guide about making payments of TDS and obtaining form 16B for the buyer and form 26QB for the seller.

I would like to run the readers through the TDS payment process and the steps to be taken to obtain Form 16B (for the deductor or buyer) and Form 26QB for the (seller or deductee).

Firstly one has to go to the following link:

https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp

  •  Once this link is opened click on Form 26QB (Payment of TDS on sale of property).
  • Select (0021) in case of non corporate payer and 0020 in case of corporate payer.
  • On filling in the various details called for in that form, click on ‘Proceed’ at the bottom of the page, this will then take you to the next page, which will give you the option to select your bank.
  • Once you select the bank, then login using the normal online process for your bank.
  • Once the payment is made the bank will let you print challan 280 with a tick on (800), which is payment of TDS on sale of property.
  • Take a printout of the challan and keep the same for your records and for the builder/seller if required.

This is the first phase of the process. Once this is completed one has to wait for seven days for the details to be reflected on TRACES web site – https://www.tdscpc.gov.in/. As a first time user, you will have to register on this website. Once you register whether as seller or buyer, you will be able to obtain the Form 16B or 26QB which has been approved and is reflected against your PAN in your Form 26AS.

Check Form 26 AS after seven days and you will notice that the payment you had effected against TDS on sale of property is reflected in Part F of the Form 26 AS under ‘Details of Tax Deducted at Source on Sale of Immoveable Property u/s 194(IA) [For Buyer of Property]. This will give you details such as the TDS certificate number (generated by TRACES), name of deductee, PAN of deductee, acknowledgement number, total transaction amount, transaction date, TDS deposited, date of deposit, status of booking and date of booking.

Once the payment is reflected in 26AS as above, you will have to go to the TRACES again. Login to the website, and click on ‘Downloads’ tab. In the dropdown menu click on ‘requested downloads’. If no application has been made you will be asked to make a request for download, here fill in the acknowledgment number (nine digit number) which is reflected on Form 26AS Part F as mentioned above. Once this is done, you will be able to view the status of your application, which generates an application request number.

Within a couple of hours, the application gets processed and you will be able to view your Form 16B by putting in the request number which you have obtained. You can take a printout of the same for your records as well as for handing over to the seller of the property. A similar process has to be followed by the seller to obtain form 26QB.

The entire process is system driven and works very smoothly.

For more details, you may also want to visit – TDS on Property – FAQ , Payment Procedure & Points to Remember


17 Responses to “TDS payment on property and how to obtain form 16B and 26QB”

  1. Indrani Banerjee says:

    Dear Mr. Dharne,

    Thank you for a detaile note on the process of 1% TDS on purcahse of property. I have recently purchased a property in Tahne and have depsoited 1% TDS as per above prcess on 23/4/14. After registeringin TRACES, I can view Form 26AS and 1% TDS is featuring in Part F of the form However, I am unable to Download Form 16B. When I am going into ‘Download’, the drop down menu is only showing ‘Registered Downloads’. It is not requesting ‘for downloa’ as mentione in your writeup. Kindly advice.

    Thanks & Regards,

    Indrani Banerjee

  2. praveen says:

    Dear Sir / Madam

    My query is related to TDS deposit procedure for property purchased from NRI

    Can we use form 26QB for this OR we need to use ITNS281 using the TAN number.

    Your early response shall be highly appreciated.

  3. Shiv Kumar Agarwal says:

    Sir, I had booked a property under construction during 2009, costing above 50 Lacks,the said property is still under construction.Unknowingly I have paid my full sixth installment amountig to Rs.2584792/- ON 04-10-13,without deducting 1% TDS.The promoter says you deposit TDS AMOUNT from our own source & give us 16B Form.The TDS amt.will be adjusted in my future installment.I am totally new in this,Kindly suggest me what to do. Thanks

  4. venkat says:

    Hi Sir,

    Like to know the procedure for deducting the Taxes in case purchase of property from NRI, whether TAN is required for deducting TDS from NRI seller.

    Pls. clarify.

    Thanks
    Venkat

  5. Anil Surana says:

    i could locate option to Download form 16B under downloads. Only form 16 & 16A are displayed. pls let me know.

  6. P.K.Kundu, Avocate says:

    Sir,

    This information is very useful to all.

    Regards
    P.K.Kundu

  7. Sandeep says:

    Sir, thanks for explaining procedure and various aspects.
    My point is that TDS deduction is implemented from June 2013 whether the deductions are to be made for the payment made after June 2013 only or we have to deposit it for the payment made till date.
    please confirm. thanks in advance.
    Sandeep Mashru

  8. pks says:

    In the case TDS on property whether undivided share or fully buildup is irrelavant.

    If you paying TDS on property it will not be additional cost to you.

    what ever the demand made by the builder you have to deduct 1% from that amount and remaing balance will pay to builder.

    for example if demand made by the builder is 5,00,000 you have to deduct Rs.5000/- and pay to builder Rs.4,95,000/- and
    Rs.5,000/- to IT department as TDS on property as prescribed procedure.

  9. Monish Mullick says:

    Very useful update for all who are planning to buy property/flats over Rs.50lakhs.

  10. Mansukh Vadgama says:

    TDS on purchase of property. I mange to download the TDS Certificate. It is password protected. More than a month, waiting for the reply from Trace regarding password. No feedback.

  11. Bhakti Dedhia says:

    Dear Sir,

    I am unable to place a request in the TRACES website. Can you guide on this part?

    Regards,
    Bhakti Dedhia

  12. deven shah says:

    Very useful info. thanx

  13. Karshanbhai Gumasna says:

    I would like to know about Revised Return of TDS and About correction in payment made TDS Challan Code. I have made payment for A.Y.2013-14 in code 94c instead of Code 94A . and I want ti Revise my TDS Retun of My client. He is registered under
    TRACES ….

    Karshanbhai Gumasna

    Mob. 9825298235

  14. Saurabh says:

    I logged into traces account on tdscpc.gov.in.
    However, I did not find the option ‘Request for Download’ under ‘Downloads’ or was not asked any Request for download. Kindly guide.

  15. BENCY says:

    Sir
    I am purchasing new Flat in Chennai under construction. Undivided share of the und has been registered in my name before 01 Jun2103
    After 01 June 2013 I am making payments to the builder on different stages of construction which includes Service Tax and Vat .
    Now he is demanding 1% TDS payment also on the building costs payments made to him on stage wise construction of progress.
    My understanding is Builder is building an apartment on my Undivided share of land under a construction contract for which he is paying Service Tax and VAT and collected from me under the statutory taxes head.
    Now he wanted to play safe and ask me to pay 1% TDS also under sec194 IA before accepting any payment for building my Apartment.Please clarify
    Tks
    Bency

  16. Sanjay Dharde says:

    All process is easy except registering on site which is very tidoues. I am unable to register since last 30 days. Can you suggest something,

  17. Amol Phatak says:

    Sir,

    very useful information.

    regards,

    amol Phatak.

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