Provisions related to TDS on Immovable Properties U/s. 194-IA

Provisions Related to TDS Payment and Furnishing of TDS Certificate

1. Any sum deducted under section 194-IA shall 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.

2. TDS payment U/s. 194-IA  shall be accompanied by a challan-cum-statement in Form No.26QB.

3. Where tax deducted is to be deposited accompanied by a challan-cum-statement in Form No.26QB, the amount of tax so deducted shall be deposited to the credit of the Central Government by remitting it electronically within the time specified in sub-rule (2A) into the Reserve Bank of India or the State Bank of India or any authorised bank.

4. Every person responsible for deduction of tax under section 194-IA shall furnish the certificate of deduction of tax at source in Form No.16B to the payee within fifteen days from the due date for furnishing the challan-cum-statement in Form No.26QB.

5. Form 16B is to be generated online from the web portal.

Provisions Related to TDS Deduction and applicability

The Finance Act 2013 had provided that purchaser of an immovable property (other than agricultural land) worth over Rs 50 lakh is required to pay withholding tax at the rate of 1% from the consideration payable to a resident transferor.  The rate at which tax is to be cut is 1%, but it would go up to as high as 20% if the seller does not disclose his permanent account number.  This amendment is effective from 1st June, 2013.

Also Read –

TDS on transfer of immovable properties wef 01.06.2013 & How to pay

TDS U/s. 194IA on Immovable Property to be paid by Form 26QB; TDS certificate in Form 16B

Categories: Income Tax

View Comments (3)

  • Respected Sir

    I am Working in the Construction Company for the past 2 years. I need one Clarification regarding TDS ON TRANSFER OF IMMOVABLE PROPERTY. The TDS is to be Deducted @ 1% for Total Consideration or Only for Land Cost which should exceed more than 50 lakhs. Kindly Clarify for me regarding the above mentioned query sir.

  • Investor purchases flat from builder against issue of allotment letter.

    No agreement for sale is executed.

    Investor shall be exciting from the investment after certain period of time on agreed terms and conditions by surrending the allotment letter.

    Under this circumstances is tax required to be deducted @ 1% on the invested amount u/s 194IA.

  • While filling up Form 26QB For the current financial year, the previous financial year was shown by oversight .As a result the credit has gone into the previous financial year. Please advise how this can be rectified.



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