What are CHALLAN Cum RETURNS under TDS provision?

Types of CHALLAN CUM RETURNS

3 types of CHALLAN Cum Return under TDS

No. Form Section TDS certificate Form Description
1 26 QB 194-IA 16B TDS on Payment of transfer of Immovable Property
2 26 QC 194-IB 16C TDS on Rent on Property
3 26 QD 194M 16D TDS on Payment to Resident Contractors and Professionals

Section 194-IA – TDS on Payment of transfer of certain Immovable Property other than agriculture land

Buyer is required to deduct TDS and NOT the seller.

Rate of TDS* = 1 % of the Total Consideration

Rate of TDS = 20% (NO PAN)

Threshold Limit = 50 Lakhs

♦ Example : –If you buy a house of Rs.65 Lakhs, you have to deduct TDS on RS.65 Lakhs and not on difference amount Rs.15 Lakhs (65-50)

*As per press release issued by CBDT, certain payments made to residents has been reduced by 25% for the period from 14th May, 2020 to 31st March, 2021.

No need to obtain a TAN (Tax deduction account number) by buyer.

Buyer can make the payment using PAN.

TDS has to be paid using FORM 26QB.

Payment is made within 30 days from the End of month in which TDS was deducted.

Buyer is required to furnish TDS Certificate in FORM  16B to the seller.

TDS certificate in Form 16B is Available around 10 to 15 days after depositing the TDS and it is mandatory to issue TDS certificate.(Downloaded only from TRACES  Portal . Link https://contents.tdscpc.gov.in/) 

TDS

As per Budget changes 2019

(Applicable from on or after 1st September, 2019)

‘Consideration for immovable’ property shall include all charges like nature of club membership fee, car parking fee, electricity or water facility fee, maintenance fee, advance fee or any other charges of similar nature, which are incidental to the transfer of the immovable property.

Transaction in Case of Joint Parties

Form 26QB challan has to be filled by each buyer for every unique buyer-seller combination for their respective share.

♦ Example of unique buyer-seller combination :

2 Forms in case 1 buyer and 2 Sellers

4 Forms in case of 2 buyer and 2 sellers

Note : – If the payment is made by installments,

then TDS has to be deducted on each installments paid.

Notice for non-Filling Form 26QB : –

CBDT received an ANNUAL INFORMATION RETURN (AIR).

AIR of ‘high value financial transactions’  is required to be furnished under section 285BA of the Income-tax Act, 1961 by ‘specified persons’ in respect of ‘specified transactions’ registered or recorded by them during the financial year.

CBDT has authorized National Securities Depository Limited (NSDL) to receive AIR.

NSDL receives the AIRs through its country-wide network  of front offices called TIN Facilitation Centers  (TIN-FCs) and on-line through  web-based facility.

The data received by TIN-FCs and data received on-line is collated by NSDL and disseminated to the Income Tax Department.

Section 194 IB :- Payment of Rent by Certain Individuals or HUF (Introduced in Finance Act 2017)

DEDUCTOR : Individuals or Hindu undivided family

(other than Covered u/s 194 I).

DEDUCTEE : – Resident

Threshold Limit = Rs.50,000 P.M or PART of Month

Rate of TDS = 5%

Rate of TDS = 20% (NO PAN)

Point of Deduction : – Earlier of the following : –

At the time of credit of rent  (for the last month in the previous year or the last month of the tenancy if the property is vacated before during the year),

OR

At the time of payment.

Section 194 M :- TDS on Payment to Resident Contractors and Professionals (As per Finance Bill of 2019)

DEDUCTOR : – Individuals or Hindu undivided family

(other than Covered u/s 194 C/194H/194J)

DEDUCTEE : – Resident

Threshold Limit = Rs.50,00,000 P.A (Greater than)

Rate of TDS = 5%

Rate of TDS = 20% (NO PAN)

Point of Deduction : – Earlier of the following : –

At the time of credit of the amount.

OR

At the time of payment

This section will be effective from 1 September 2019 onwards

Time limit on depositing TDS

Payment is made by or on behalf of the

government : –

TDS paid to the department on the day of the

payment

Payment is made other than above :-

TDS will have to be paid –

For any Other month :  – within 7 days from the end

of the month in which the tax deduction is made

For March : –  Up to April 30 of the next FY

How to fill  Form for Challan Cum Returns )

♦ Log on to nsdl.com

♦ Select Services and go to e-payment-Pay taxes online’.

♦ Select any one of 3 tabs which you required to filled

1. TDS on Property (Form 260B)

2. TDS on Rent of Property (Form 260C)

3. TDS on Payment to Resident Contractors and Professionals (Form 260D)

How to FILL  Form for Challan Cum Returns

♦ Fill all other relevant / necessary details above 3 tabs.

♦ Once you fill in all the other relevant / necessary details, the last tab is ‘payment info’.

♦ 2 modes of payment

  • E-tax payment immediately (through net banking facility)
  • e-tax payment on the subsequent date (e-payment of taxes by visiting any of the Bank branches)

How to fill  Form for Challan Cum Returns )

Choose the any one mode of payment and click on ‘Proceed’.

If you choose net banking, you will be able to login into your bank and pay online. After you have paid, the bank lets you print Challan 280 with a tick on 800 (i.e. payment of TDS on sale of the property)

If you cannot pay online, an online receipt for Form 26QB with a unique Acknowledgment Number is generated for you. This is valid for 10 days after generation. You can visit to any one of authorized bank along with your cheque. The bank will proceed with the online payment and generate your challan.

Register yourself on TRACES portal

Register on Tracesas TAX PAYER with your PAN Card Number and the Challan number.

♦ After that, you can download TDS certificate in FORM 16B/16C/16D after specified period of time and issue this Form to payee.

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Disclaimer: The purpose of this is to share knowledge and it is for education purpose only. This does NOT constitute NOR does this form part of neither it is to be construed as, A LEGAL OPINION. The analysis is solely based on the reading abilities of the Author. They may be correct/incorrect as per you. No representation or warranty, express or implied, is made or given in respect of any information provided. UNDER NO circumstances should any recipient rely on this communication as a basis for any legal decision. The views expressed are of personal to the author. They do not reflect the views of any organization he may be directly/indirectly associated with. Neither author nor any of its affiliates accepts any legal liability, or responsibility, for, or provides any assurance or guarantee of accuracy, authenticity, completeness, correctness, dependability, reliability, suitability or timeliness of, any part of this article. The contents of this article are based only on the understanding of the Law, Rules, Notifications, etc. of the author and THEY ARE NOT BASIS FOR ANY LEGAL OPINION.

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Author Bio

Qualification: CA in Practice
Company: Jayprakash P & Company
Location: Mumbai, Maharashtra, India
Member Since: 14 Mar 2021 | Total Posts: 11
The author, CA Jayprakash Pandey is a practicing Chartered Accountant (Founder of Jayprakash P & Company) having Office at Mumbai, with more than 5 years of professional cum practical experience, Direct Tax, International Taxation, Indirect Tax & FEMA and RERA Consultant, litigation & co View Full Profile

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