As we all are aware that TDS is applicable on sale of immoveable property wherein the sale consideration of the property exceeds or is equal to Rs 50,00,000 (Rupees Fifty Lakhs). Sec 194IA of the Income Tax Act, 1961 states that for 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 authorised bank branches.
Facility for furnishing information regarding the transaction of sale of immoveable property and payment of TDS thereof is available on this website.
Detailed procedure, user friendly e-tutorial, list of Bank branches authorised to accept TDS and Frequently Asked Questions (FAQs) are available on this website for reference.
Page Contents
- Points to be remembered by the Purchaser of the Property:
- Points to be remembered by the Seller of the Property:
- Frequently Asked Questions
- What is TDS on property?
- Who is responsible to deduct the TDS on sale of Property?
- I am Buyer, do I required to procure TAN to report the TDS on sale of Property?
- What if I don’t have the PAN of the seller is it Mandatory?
- How can I use this facility to pay TDS on sale of Property?
- If I encounter any error on NSDL site while entering the online form details what should I do?
- PAYMENT THROUGH e-TAX PAYMENT OPTION IMMEDIATELY
- What is the procedure for furnishing TDS through the e-tax payment option immediately after providing the transaction details?
- How do I know whether my bank provides this facility?
- What is the procedure after being directed to the net banking site of the bank?
- What will happen after I confirm the payment of tax at my bank’s site?
- What is the timing for making payment through internet?
- Whom should I contact if the counterfoil containing the CIN is not displayed on completion of the transaction and if I want duplicate counterfoil?
- PAYMENT OF TDS SUBSEQUENTLY
- What is the procedure for paying the TDS amount into the Bank subsequently, i.e. not immediately after furnishing the purchase transaction details online?
- What do I do if I have misplaced the Acknowledgment slip for payment through the Bank branches?
- Which banks are Authorised to accept TDS Payment U/s. 194IA?
Points to be remembered by the Purchaser of the Property:
- Deduct tax @ 1% from the sale consideration.
- Collect the Permanent Account Number (PAN) of the Seller and verify the same with the Original PAN card.
- PAN of seller as well as Purchaser should be mandatorily furnished in the online Form for furnishing information regarding the sale transaction.
- Do not commit any error in quoting the PAN or other details in the online Form as there is no online mechanism for rectification of errors. For the purpose of rectification you are required to contact Income Tax Department.
Points to be remembered by the Seller of the Property:
- Provide your PAN to the Purchaser for furnishing information regarding TDS to the Income Tax Department.
- Verify deposit of taxes deducted by the Purchaser in your Form 26AS Annual Tax Statement.
Frequently Asked Questions
What is TDS on property?
The purchaser of an immovable property (other than rural agricultural land) worth Rs 50 lakh or more is required to pay withholding tax at the rate of 1% from the consideration payable to a resident transferor
Who is responsible to deduct the TDS on sale of Property?
According to rules in respect of tax deducted at source, buyer of the property would have to deduct the TDS and deposit the same in Government treasury.
I am Buyer, do I required to procure TAN to report the TDS on sale of Property?
Buyer or Purchaser of the property is not required to procure Tax Deduction Account Number (TAN). The Buyer is required quote his or her PAN and sellers PAN.
What if I don’t have the PAN of the seller is it Mandatory?
PAN of the seller is mandatory. The same may be acquired from the Seller before effecting the transaction.
How can I use this facility to pay TDS on sale of Property?
The Buyer of the property (deductor of tax) has to furnish information regarding the transaction online on the TIN website. After successfully providing details of transaction deductor can:
- Either make the payment online (through e-tax payment option) immediately;
- Or make the payment subsequently through e-tax payment option (net-banking account) or by visiting any of the authorized Bank branches. However, such bank branches will make e-payment without digitization of any challan. The bank will get the challan details from the online form filled on www.tin-nsdl.com
If I encounter any error on NSDL site while entering the online form details what should I do?
If any problem is encountered at the NSDL website while entering details in the online form then contact the TIN Call Center at 020 – 27218080 or write to us at [email protected] (Please indicate the subject of the mail as Online Payment of Direct Tax).
PAYMENT THROUGH e-TAX PAYMENT OPTION IMMEDIATELY
What is the procedure for furnishing TDS through the e-tax payment option immediately after providing the transaction details?
E-Payment facilitates payment of taxes online by taxpayers. To avail this facility the taxpayer is required to have a net-banking account with any of the Authorized Banks. Please follow the steps as under to pay tax online:-
Step 1
a) Log on to NSDL-TIN website (www.tin-nsdl.com).
b) Click on the option “Furnish TDS on property”.
c) Select Form for Payment of TDS on purchase of Property.
Step 2
After selecting the form you will be directed to the screen for entering certain information.
Example:-
a) Permanent Account Number (PAN) of Property Purchaser and Seller.
b) Address of the Purchaser, Seller as well as the Property being purchased
c) Financial Year during which the Purchase has been made
d) Major Head Code – To indicate the type of tax applicable viz; Tax on companies/Tax on other than companies
e) Value of Property
f) Date of agreement/booking
g) Amount Paid/credited (Transaction amount)
h) Rate of TDS
i) TDS Amount
j) Dates of payment/credit, deduction
k) Select the option for “Payment of taxes immediately”
It is important to ensure that PAN of Buyer and Seller are correctly mentioned in the form. There is no online mechanism for subsequent rectification. Deductor will have to approach the Assessing Officer or CPC-TDS for rectification of errors.
Step 3
After entering all the above detail, click on PROCEED button. The system will check the validity of PAN. In case PAN is not available in the database of the Income Tax Department then you cannot proceed with the payment of tax.
If PAN is available then TIN system will display the contents you have entered along with the “Name” appearing in the ITD database with respect the PAN entered by you.
Step 4
You can now verify the details entered by you. In case you have made a mistake in data entry, click on “EDIT” to correct the same. If all the detail and name as per ITD is correct, click on “SUBMIT” button. Nine digit alpha numeric ACK no. will be generated and you will be directed to the net-banking site provided by you.
Please be informed that the name and status of PAN is as per the ITD PAN Master. You are required to verify the name before making payment. In case any discrepancy is observed, please confirm the PAN entered by you. Any change required in the name displayed as per the PAN Master can be updated by filling up the relevant change request forms for PAN. If the name is correct, then click on “Confirm”
Step 5
After confirmation an option will be provided for submitting to Bank. On clicking on Submit to Bank deductor will have to login to the net-banking site with the user ID/ password provided by the bank for net-banking purpose and enter payment details at the bank site.
On successful payment a challan counterfoil will be displayed containing CIN, payment details and bank name through which e-payment has been made. This counterfoil is proof of payment being made.
How do I know whether my bank provides this facility?
To avail this facility the taxpayer is required to have a net-banking account with any of the Authorized Banks. List of Authorized Banks is available at the TIN website in the link
What is the procedure after being directed to the net banking site of the bank?
TIN system will direct you to net-banking facility of your bank. You will have to log on to the net banking site of your bank using your login ID and password/PIN provided by the bank. The particulars entered by you at TIN website will be displayed again.
You will now be required to enter the amount of tax you intend to pay and also select your bank account number from where you intend to pay the tax. After verifying the correctness, you can proceed with confirming the payment.
What will happen after I confirm the payment of tax at my bank’s site?
Your bank will process the transaction online by debiting the bank account indicated by you and generate a printable acknowledgment indicating the Challan Identification Number (CIN). You can verify the status of the challan in the “Challan Status Inquiry” at NSDL-TIN website using CIN after a week, after making payment.
What is the timing for making payment through internet?
You will have to check the net-banking webpage of your bank’s website for this information.
Whom should I contact if the counterfoil containing the CIN is not displayed on completion of the transaction and if I want duplicate counterfoil?
Your Bank provides facility for re-generation of electronic challan counterfoil kindly check the Bank website, if not then you should contact your bank request them for duplicate challan counterfoil.
If any problem encountered while entering the financial details at the net-banking webpage of your bank, then you should contact your bank for assistance.
PAYMENT OF TDS SUBSEQUENTLY
What is the procedure for paying the TDS amount into the Bank subsequently, i.e. not immediately after furnishing the purchase transaction details online?
Using this facility deductor (Buyer) can furnish the details online and make the payment of taxes subsequently either through net-banking account or by visiting any of the authorized bank branches. Following are the steps to avail this facility:
Step 1
a) Log on to NSDL-TIN website (www.tin-nsdl.com).
b) Click on the option “Furnish TDS on property”.
c) Select Form for Payment of TDS on purchase of Property.
Step 2
After selecting the form you will be directed to the screen for entering certain information.
Example:-
a) Permanent Account Number (PAN) of Property Purchaser and Seller.
b) Address of the Purchaser, Seller as well as the Property being purchased
c) Financial Year during which the Purchase has been made
d) Major Head Code – To indicate the type of tax applicable viz; Tax on companies/Tax on other than companies
e) Value of Property
f) Date of agreement/booking
g) Amount Paid/credited (Transaction amount)
h) Rate of TDS
i) TDS Amount
j) Dates of payment/credit, deduction
k) Select the option for “Payment of taxes immediately”
It is important to ensure that PAN of Buyer and Seller are correctly mentioned in the form. There is no online mechanism for subsequent rectification. Deductor will have to approach the Assessing Officer or CPC-TDS for rectification of errors.
Step 3
After entering all the above detail, click on PROCEED button. The system will check the validity of PAN. In case PAN is not available in the database of the Income Tax Department then you cannot proceed with the payment of tax.
If PAN is available then TIN system will display the contents you have entered along with the “Name” appearing in the ITD database with respect the PAN entered by you.
Step 4
You can now verify the details entered by you. In case you have made a mistake in data entry, click on “EDIT” to correct the same. If all the detail and name as per ITD is correct, click on “SUBMIT” button. Nine digit alpha numeric ACK no. will be generated and you will be provided with an option to print an Acknowledgment slip.
Please be informed that the name and status of PAN is as per the ITD PAN Master. You are required to verify the name before making payment. In case any discrepancy is observed, please confirm the PAN entered by you. Any change required in the name displayed as per the PAN Master can be updated by filling up the relevant change request forms for PAN. If the name is correct, then click on “Confirm”.
Step 5
With the printout of the Acknowledgment slip, you may visit any of the authorized Bank branches to make the payment of TDS subsequently. The Bank will make the payment through its netbanking facility and provide you the Challan counterfoil as acknowledgment for payment of taxes. Based on the information in the Acknowledgment slip, the bank will make the payment only through net-banking facility by visiting tin-nsdl.com and entering the acknowledgement number duly generated by TIN for the statement already filled by the buyer in respect of that transaction.
In case you desire to make the payment through e-tax payment (netbanking account) subsequently, you may access the link ‘View/Payment of TDS on property” on the TIN website. On entering the details as per the acknowledgment slip, you will be provided an option to submit to the bank wherein you have to select the Bank through which you desire to make the payment. You will be taken to the netbanking login screen wherein you can make the payment online.
What do I do if I have misplaced the Acknowledgment slip for payment through the Bank branches?
You may access the access the link ‘View/Payment of TDS on property” on the TIN website. On entering the details as per the acknowledgment slip, you will be provided options to either Print the Acknowledgment Slip.
In case you desire to make an online payment, on the same screen option for Submit to the bank is provided wherein you have to select the Bank for payment. You will be taken to the netbanking login screen wherein you can make the payment online.
Which banks are Authorised to accept TDS Payment U/s. 194IA?
Authorized Banks:
- Axis Bank
- Bank of Baroda
- Bank of India
- Bank of Maharashtra
- Canara Bank
- Central Bank of India
- Dena Bank
- HDFC Bank
- ICICI Bank
- IDBI Bank
- Indian Bank
- Indian Overseas Bank
- Jammu & Kashmir Bank
- Punjab and Sind Bank
- Punjab National Bank
- State Bank of India
- UCO Bank
- Union Bank of India
- Vijaya Bank
RELATED POSTS ON THE TOPIC
Republished with Amendments
For AY 2019-20 correction request under section 194IA for a property sale that did not happen has been done. However refund of tax deducted from me Rs50,000 is still pending. The buyer is not interested in filing refund request for Rs 50,000 and the buyer has died. The income tax department should refund me Rs 50,000. Please advise what is the procedure to get refund of Rs50,000. TDS has been deducted from me and I should get the refund. It is ridiculous to ask me to go to the buyer who is dead and his son is not willing to file refund request. Income Tax Act and rules should have a solution for this situation.
I couldnt read the reply
I am a buyer. While purchasing a flat from owner, we mutually agreed that owner will pay the tds. I have mentioned the clause that Owner will solely responsible to pay the tds. But afterwards Owner turned and denied to pay the TDS. at this situation who is responsible to pay the tds as the law says buyer should diduct the while making the payment. otherwise buyer will face the penalty issues. law is not saying buyer should pay the sellers tds. The keyword in the law as I know is diduction. So will tax department askes me to the penalty only? or penalty plus tds amount? How tax department can ask me to pay sellers tds if I transfered whole flat amount and tds is not deducted? Please advice. Also tell me can I file an FIR against owner to brich the clause in sale deed agreement? or can I put a case in court against owner for violating the clause which I mentioned in the agreement?
My sister and brother in law Purchased a property worth Rs 63 lacs. They are the joint owners. What should be entered in “value of property” and “Amount credited/Transaction amount” as both have to deduct TDS amount.
I booked a Flat in Marathon Nexzone in Panvel on 25th March 2015. The Agreement Value was Rs.59 Lakhs. It was bought in installments. The builder did not instruct me to pay TDS. The project got delayed. Till 2019 I had paid Rs. 43 Lakhs. In December 2020 I paid another Rs. 17 Lalkhs . That was the final payment.
In June 2021 when I have paid the total amount the builder told me to pay Rs. 60551/- as TDS. now Income Tax is asking for a penalty of Rs. 50,331 /- on TDS. I paid Rs. 60,551 on 30th June 2021.
My question is what should be taken as the Financial Year in the 26QB Form and how much should be the total TDS ?
You must deduct 1% of TDS i.e. 76,000 and pay the balance to the seller.
Also remember, if you you are paying in installments then the TDS at 1% needs to be paid at every installment.
TDS needs to be paid within 30 days from the LAST DAY of the month in which you have made the payment to the seller. Example. if you have made the payment on 10th June, the TDS has to be paid before 30th July.
if there is 2 buyers with 50 50 ratio and one buyer died before final deed then who is liable to pay tds. can we pay 50% tds by the name and pan of died buyer
i have purchased a resale plot which was not registered. the first party has just made the sale agreement and paid 20% of the sale consideration to the developer and also paid 20% of TDS to government. now i have to make the remaining 80% of TDS to government.
how to make the payment
please suggest
thanks
I pay TDS after every disbursement.
After my last disbursement I was supposed to pay TDS of Rs 14160 however by mistake I happen to pay TDS of Rs 14018. So balance TDS payable remains Rs 142.
How can I pay this remaining Rs 142?
Please guide.
Thanks and Regards
I have purchased property of 76 lacs. Now how much payment shall be done to seller? I.e. 75.24 lacs and 1% tds to gvt. Or 76 lac to seller and separate 1% tds to govt
Hi,
Recently my self and wife jointly purchased a property of 75 lakhs. Wife is housekeeper and have no income. All the contribution is from husband side. Do the 1% TDS need to be given from Wife also… for example 0.5% from Husband and 0.5% from wife for each installment. Plz help on this query.
If I have bought a property with underconstruction project, of Rs.60,00,000/- and TDS as 1% is 60,000/-
Instead of paying TDS of 1% at each slab, while making flat cost payment to the developer everytime,
can I pay the TDS of the entire 1% of agreement value at once and for all
Yes, very much indeed. It would be an advance payment to the government.
yes
TDS must be deducted on each instalment and should be submitted through 26QB. Otherwise an interest and/or fine will be levied.
Hello There,
I paid 655010 (instalment) to the builder deducting TDS of RS 6551 (it should be actually 6550.10 but decimal payments are not allowed while making TDS payment on 26QB).
Later on 26AS RS 0.90 it being shown in PART A2 (which is for seller). Can you please advise if this is all right? PART F also shows return entry of RS 0.90
I think total sale consideration does not include service tax
The Assessee purchased property in joint name with his spouse for sale consideration of Rs. 55.00 lacs and sellers were also two persons jointly. TDS Liability u/s 194 IA (Rs. 55000/-) was paid. But assessee, inadvertently, deposited TDS amount with details of one seller only. Technically speaking, 26QB will be required with details of both sellers and both buyers, resulting in more than one challan/ return.
Department has issued a notice in the matter that one of buyer has not furnished details as to Form 26QB and it will attract penal provisions.
There are no such cases as to answer this issue. There is no loss to revenue. Should we approach jurisdictional assessing office for correction or some other measures are available under four corners of law.
I entered into a pre registration agreement for the property in pune in Dec 2013 which shall be handed over to me ( final registered agreement) in June 2016, when i have to pay the TDS at the time of final registry or since beginning ?
Does the amount of TDS deduction should be made during every installment payment to the seller or can the same be made before making the final payment for the property?
Also has there been any penalty/ fine prescribed for the non compliance with 194 IA ?
Mr A Purchased a Flat From XYZ Properties Rs. 1.50 Crore in which he is a partner. TDS will be applicable or not ?
Whether 1% TDS are applicable on the Costruction agreement cost.
Hi
I had paid some tax as buyer of Immovable property 7 days back .
Now I want to download the Form 16B , for that i need to register with TDS website as I am a new user.
While registering the same I am getting error like ” Option 2 entered is Invalid” but I entered correctly.
Hope you will solve this & help me please …
Sir, Cost of flat booked 100 lac paid before 31.05.2013 Rs. 90 lac balance paid after 31.5.2013 is 10 lac, should we are liable for TDS? and if yes on balance payment TDS not deducted, so liability will arise on 10 lac or on 100 lac..?
Regards
IF WE HAVE RECEIVED THE PAYMENT OF FLAT PARTIALLY IN FY 2014-15 ON WHICH TDS HAS BEEN DEDUCTED AND BALANCE PAYMENT IN FY2015-16 AND CAPITAL GAIN BOOKED. IN THIS CASE CAN WE TAKE THE BENEFIT OF TDS DEDUCTED IN FY 2014-15
What is the total consideration for property to be entered in form 26QB?
a) The Agreement value
b) Your share in property
c) Total Consideration paid/payable by you and not the other buyers
In what ratio are you supposed to pay TDS in case ownership ratio is not mentioned in the agreement?
a) Completely by first owner
b) Equally
c) In the ratio consideration is paid
Dear Sir
I am a salaried person working as Professor at MNNIT Allahabad, U.P. I purchased a flat in Noida. The seller has deducted and deposited TDS @1% as the property value was more than 50 lakhs. In my TDS traces Form 26AS,, under Part F- Details of tax deducted at source on sale of Immovable property u/s 194IA (For buyer of property) is appearing with TDS certificate number, Name of Deuctee, i. Builders name, PAN of deductee, Acknowledgement number, total transaction ammount, transaction date, TDS deposited and date of deposit. I wish to know which ITR I have to fill whether ITR-1 or ITR-2. How I have to show this in e-filing of ITR as the amount was paid to buyer and he has deposited the TDS as name of deductee is the seller of the property.
Kindly help me out so that I can e-file the requisite ITR for AY 2015-16
Your early reply is appreciated.
Thanking you and with regards,
Dr. Ram Pal Singh
Dear Sir
I am a salaried person working as Professor at MNNIT Allahabad, U.P. I purchased a flat in Noida. The seller has deducted and deposited TDS @1% as the property value was more than 50 lakhs. In my TDS traces Form 26AS,, under Part F- Details of tax deducted at source on sale of Immovable property u/s 194IA (For buyer of property) is appearing with TDS certificate number, Name of Deuctee, i. Builders name, PAN of deductee, Acknowledgement number, total transaction ammount, transaction date, TDS deposited and date of deposit. I wish to know which ITR I have to fill whether ITR-1 or ITR-2. How I have to show this in e-filing of ITR as the amount was paid to buyer and he has deposited the TDS as name of deductee is the seller of the property.
Kindly help me out so that I can e-file the requisite ITR for AY 2015-16
Your early reply is appreciated.
Thanking you and with regards,
Dr. Ram Pal Singh
Professor of Environmental Engineering
Department of Civil Engineering
If tds deducted on part payment by the buyer at the time of agreement to sell of immovable property during 2014-15 and the same was deposited in our account by the buyer and have been claimed from the Income Tax liability during the f.y 2014-15. But Now the agreement to sell is cancelled during the month of August 2015 i.e during f.y 2015-16 , and we have to return the full recieved payment to the buyer.
Now what will be the status of Tds claimed by us during 2014-15??
Kinldy advice
Query – I sold my property for rs 50 lack amount and buyer gave me entire 50 Lack without deducting TDS .
We both was not aware of TDS clause that time. Now who will pay the TDS buyer or seller.
Hi ,
I have booked under construction flat base prize 58 lacs in August 2014. As of today I have paid 20% from my side and 60% from bank side to builder.
Till now I was not aware of 1% TDS on purchase of immovable property and even my builder has not informed me about this. So now do I need pay with fine. please advise!
Weather limit to the cost of property is inclusive of applicable Service Tax ?
Booked a property in 2011 for Rs 48,90,000.00 only,If the applicable Service Tax is added total exceeds 50 lakh, weather the TDS is to be deducted while making further payments) (an aprox. amount of Rs 16,00,000.00 inclusive of Service Tax was paid in 2011, Builder has demanded payment now – being construction Linked payment plan.
Thanks
I have quick queries – I bought a under construction flat of Rs 60 lacs with co-applicant my wife in 2012. I have paid 95% of the cost before 01 June 2013 and builder buyer agreement is of 24 April 2013. During possession, I have paid rest 5% i.e. 3 lacs on 26 May 2015 from my wife’s account, without deducting TDS on 5% payment.
Do I have pay TDS in two challans i.e. 0.5% against my PAN and 0.5% against my wife PAN, or one challan of 1% against my PAN would work too?