CA Pratik Anand

In its latest move to penalise late payers of TDS, the CPC TDS has started issuing intimation u/s 200A of the Income Tax Act’1961 to the deductors u/s 194IA i.e the buyers of property who have paid TDS U/s 194IA late.

The CPC TDS is not only charging interest u/s 201 but also late fee u/s 234E of the Act.

Let us examine the relevant Sections of the Income Tax Act’1961.

Sec 194IA:

(1) Any person, being a transferee, responsible for paying (other than the person referred to in section 194LA) to a resident transferor any sum by way of consideration for transfer of any immovable property (other than agricultural land), shall, at the time of credit of such sum to the account of the transferor or at the time of payment of such sum in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equal to one per cent of such sum as income-tax thereon.

(2) No deduction under sub-section (1) shall be made where the consideration for the transfer of an immovable property is less than fifty lakh rupees.

(3) The provisions of section 203A shall not apply to a person required to deduct tax in accordance with the provisions of this section.

Sec 194-IA deals with TDS on sale of immovable property. Under this section TDS is to be deducted @1% at the time of credit of such sum to the account of the transferor or at the time of payment of such sum whichever is earlier on sale of immovable property.

The transferor or the seller contemplated in this section should be a resident of India. Therefore, this section only deals with sale of property by residents and TDS @1% is to be deducted on such sale by resident seller provided the consideration for sale of property exceeds Rs. 50 lacs.

Tax will be deducted at the time of making payment of installment or the whole of purchase consideration as the case may be. If any advance payment is done for the purchase of property, tax should be deducted at the time of advance payment.

For example, if you are going to make payment of a installment of Rs. 10,00,000 on 25th March’2015, tax of Rs. 10,000 shall be deducted the same day ie. 25th March’2015 and you should pay the seller Rs. 9,90,000 (net of TDS).

Time limit for payment of Tax u/s 194IA to the Govt. Account

Tax deducted(TDS) from payments made to seller shall be deposited to the goverment treasury within 7 days from the end of the month of deduction.

For example: if Rs. 10,000 tax was deducted on 25th April 2014, same shall be deposited with the government account till 7th May 2014.

How to deposit tax:

Tax shall be deposited to the government treasury by filling a challan cum statement Form 26QB online, availble at TIN-NSDL website. Payment of TDS on purchase of property is to be made online by availing any one of the following options:

  • online using your net banking account or
  • by filling the Form 26QB and selecting the option e-tax payment on subsequent date. Now you should take the print out of the acknowledge slip, and visit any of the authorized banks for payment of TDS. Bank will make the e-payment of tax and provide you the challan of tax payment.

Make sure to fill challan cum statement in Form 26QB correctly as till now there is no possibile way to rectify any error/mistake online. You will be required to contact the assessing officer or CPC-TDS for any subsequent rectification.

Facility for verification of status of TDS deposit is also available at online services of TIN-nsdl.

Ques: What if TDS is not paid to the Govt. account by the due date?

Ans: Section 201 of the Income Tax Act’1961:

Where any person, including the principal officer of a company,—

(a) who is required to deduct any sum in accordance with the provisions of this Act; or

(b) referred to in sub-section (1A) of section 192, being an employer,

does not deduct, or does not pay, or after so deducting fails to pay, the whole or any part of the tax, as required by or under this Act, then, such person, shall, without prejudice to any other consequences which he may incur, be deemed to be an assessee in default in respect of such tax:

[(1A) Without prejudice to the provisions of sub-section (1), if any such person, principal officer or company as is referred to in that sub-section does not deduct the whole or any part of the tax or after deducting fails to pay the tax as required by or under this Act, he or it shall be liable to pay simple interest,—

(i) at one per cent for every month or part of a month on the amount of such tax from the date on which such tax was deductible to the date on which such tax is deducted; and

(ii) at one and one-half per cent for every month or part of a month on the amount of such tax from the date on which such tax was deducted to the date on which such tax is actually paid,

and such interest shall be paid before furnishing the statement in accordance with the provisions of sub-section (3) of section 200:]

Therefore from reading of the above section we can draw the following conclusions:

Interest u/s 201 is to be levied and the deductor is to be deemed as an assessee in default for failure to pay or for late payment of any TDS including TDS on immovable property.

Therefore,

a) If tax deducted is not paid by the 7th of next month of the month of deduction but is paid at a later date:

Interest at one and one-half per cent(1.5%) for every month or part of a month on the amount of such tax from the date on which such tax was deducted to the date on which such tax is actually paid.

b) If tax is not deducted at all:

Interest at one per cent for every month or part of a month on the amount of such tax from the date on which such tax was deductible to the date on which such tax is deducted.

For example: If Rs. 10,000 tax was deducted on 25th April 2014, same shall be deposited with the government account till 7th May 2014. But if the same is paid say by 7th June then,

Interest will be calculated as follows:

Months of default: 3 (April to June)

Interest Rate: 1.5%*3=4.5%

Amount of Interest: Rs. 10,000*3*1.5%= Rs.450/-

Ques: Besides interest is there any penalty also for late payment of TDS u/s 194IA also?

Ans: As per Section 200(3) of the Income Tax Act’1961,

Any person deducting any sum on or after the 1st day of April, 2005 in accordance with the foregoing provisions of this Chapter (Chapter of TDS) or, as the case may be, any person being an employer referred to in sub-section (1A) of section 192 shall, after paying the tax deducted to the credit of the Central Government within the prescribed time, [prepare such statements for such period as may be prescribed] and deliver or cause to be delivered to the prescribed income-tax authority or the person authorised by such authority such statement in such form and verified in such manner and setting forth such particulars and within such time as may be prescribed:

Therefore, every person paying any tds has to furnish a statement in the prescribed form containing details of the tds deducted and paid.

The meaning of prescribed statement is given in Rule 31A of the Income Tax Rules’1962. Sub rule 4A of Rule 31A states as follows:

4A) Notwithstanding anything contained in sub-rule (1) or sub-rule (2) or sub-rule (3) or sub-rule (4), every person responsible for deduction of tax under section 194-IA shall furnish to the Director General of Income-tax (System) or the person authorised by the Director General of Income-tax (System) a challan-cum-statement in Form No. 26QB electronically in accordance with the procedures, formats and standards specified under sub-rule (5) within seven days from the end of the month in which the deduction is made.

Therefore, Rule 31A(4A), clearly prescribes that the Form 26QB by which Tds on immovable property is paid is not only a challan for the payment of tax but is also treated as a statement of tax deducted at source (i.e tds return in simple words).

Sec 234E:

Without prejudice to the provisions of the Act, where a person fails to deliver or cause to be delivered a statement within the time prescribed in sub-section (3) of section 200 or the proviso to sub-section (3) of section 206C, he shall be liable to pay, by way of fee, a sum of two hundred rupees for every day during which the failure continues.

(2) The amount of fee referred to in sub-section (1) shall not exceed the amount of tax deductible or collectible, as the case may be.

(3) The amount of fee referred to in sub-section (1) shall be paid before delivering or causing to be delivered a statement in accordance with sub-section (3) of section 200 or the proviso to sub-section (3) of section 206C.

(4) The provisions of this section shall apply to a statement referred to in sub-section (3) of section 200 or the proviso to sub-section (3) of section 206C which is to be delivered or caused to be delivered for tax deducted at source or tax collected at source, as the case may be, on or after the 1st day of July, 2012.]

Therefore, as per section 234E, late fee of Rs. 200/-per day subject to the amount of tax is to be levied for late filing of any statement of tax deducted/collected at source.

Since form 26QB is treated as a statement prescribed u/s 200(3), therefore late filing of the same will attract late fee u/s 234E of Rs. 200/-per day.

Continuing with the above example, If Rs. 10,000 tax was deducted on 25th April 2014, same shall be deposited with the government account till 7th May 2014. But if the same is paid say by 7th June then, late fee will be calculated as follows:

No. of days from 8th May to 7th June’2014= 31 days

Late fee= 31*200= 6200/- or Rs.10,000 (amount of tax) whichever is lower

            = Rs. 6200/-

Therefore, to avoid interest and late fee, pay your TDS on immovable property timely.

Hope you find the above information relevant and useful in your daily practice

Author Bio

Qualification: CA in Practice
Company: Pratik & Associates
Location: New Delhi, New Delhi, IN
Member Since: 10 Jun 2017 | Total Posts: 52
Pratik Anand is the founder of youronlinefilings.com, an online startup for business registrations, annual business compliance services, Tax filings, book keeping, legal consultancy etc. He is a Chartered accountant by profession and has special flair and expertise in the area of direct Taxation. H View Full Profile

My Published Posts

More Under Income Tax

Posted Under

Category : Income Tax (25038)
Type : Articles (14349) Featured (4134)
Tags : CA Pratik Anand (52) Section 194IA (41) Section 234E (51) TDS (895)

130 responses to “TDS on sale of Immovable Property- Beware CPC TDS issuing intimation for late deposit of TDS”

  1. Puneet Sachdeva says:

    Ques: Buyer was suppossed to deduct TDS @1% on a sale consideration of 82 lakhs (41000 in mother’s PAN and 41000 in daughter’s PAN since it was jointly owned property). However, he deducted only 1% on 82 lakhs on mother’s PAN. Now, how sould i file my ITR for both mother and daughter as buyer is not ready to rectify mistake? Please help.

  2. Vinod Kansal says:

    I purchased flat from builder who is a company. to deposit tds which challan to be filled in Form 26QB – 0020 or 0021?

  3. Pulak Gope says:

    I have gone through the thread and really appreciate the details you have shared. Still I have big confusion & need your expert suggestion.

    I have booked a flat in Dec-2013. The agreement was made on April 2014. The building is still under construction. I have started paying the installments since Dec-2013. All together 16 installment has been paid, only the last installment is balance.

    I probably I did a blunder, regarding not withholding & depositing the TDS. I have not withhold the TDS amount since beginning assuming that cost of my flat is below 50 lakhs.

    The break-up of cost is as below-

    Cost breakup head
    Flat Cost – 49,03,254
    Service Tax – 1,66,446

    Society Charges
    Share Money -600
    Society Formation Charges 20,000
    Building CAM Amount -59,454

    Other Charges
    Legal Charges – 20,000
    Infra Charges – 2,10,276
    Water Electric (Connection) – 27,500
    Club Membership Charges – 1,26,000
    Pipe Gas Charges – 7,500

    It was told to me initially that the flat cost only considered for the property value, society & other charges are not considered. But, now the builder is saying that I have to deposit the taxes of all the charges mentioned above, except the Service Tax.

    I wish to deposit the TDS, but I am confused how to proceed ahead and what are the interest & penalties to be paid.

    I need your valuable suggestion in this regard.

    Regards,

    Pulak

  4. Balchand says:

    Whether Service tax and Vat are part of total value of property for TDS purpose.?Suppose 48 Lakhs is sale value goes to Builder/ seller and 3 Lakhs goes as Vat and service tax to Govt.

    TDS applicable or not in above case?

  5. VG says:

    everywhere I read it’s mentioned that the TDS deducted on property purchase needs to be paid to the govt. within 7 days from the end of month in which TDS was deducted. However, on the home page of TRACES website under the heading 26QB filing it’s mentioned “TDS deducted u/s 194IA (TDS on sale of immovable property) shall be paid to the credit of the central government within a period of thirty days from the end of the month in which the deduction is made and shall be accompanied by a challan-cum statement in Form No. 26QB as per Income Tax Rule 30(2A).”

    My query is: Is TDS to be paid within 7 days or within 30 days from the end of the month in which deduction is made?

  6. Nihar Samanta says:

    Hi,
    While paying builder I deducted tax of Rs.5000 on 19-04-2016 and paid through NSDL website on 04-06-2016. Can you help me find what would be the late payment fees I have to pay and how to pay ?

  7. vadake says:

    I want to join

  8. kush says:

    Hello sir,
    My father purchased a property worth Rs.36,90,000 in 2013.On 7th april he got a mail from cpc(tds) regarding filing of form 26QB as the property is worth Rs.50 lac.
    what should we do in this regard.?
    Is he required to file 61A or not?

    kindly enlighten me with your reply.

  9. yashwant bandwal says:

    Hi, I have got sms/emails (Defaults have been identified in the regular statement filed by you for the PAN and date of payment/credit 22-Feb-2016. Please check your traces inbox or email) from income tax in late deduction of TDS on sale of property in last week. I & my wife were the buyers.We both got notices.
    My payment date to seller was 22-Feb-2016 and I deposited tds on 08-03-2016 (one day late from income tax deadline date usually).
    TDS amount was 19125 and interest on late deduction has come as 382/- . There were 2 buyers and 2 sellers so 4 notices came with same interest amount of 382/-.
    Could you tell me now what should be the next steps?

  10. sandeep says:

    I went through the thread and really appreciate the details you have shared. I still need some more clarity on “Late Deduction Interest Computation u/s 200A and u/s 154 read with Sec 201(1A)”
    I made payment of 99000 to builder on 21st September 2015
    I did TDS Payment of 1000 on 6th October 2015

    I specified deduction date as 6th October 2015, can you please confirm if that was incorrect and I should have putted it as 21st September 2015?
    If yes, is there a way to rectify this?

  11. Swapnil Bagul says:

    I pay tds of rs 30894 against payment of 3089398 on 07/08/2015. I deduct TDS on 04/09/2015 yesterday I received mail from income tax dept saying to pay 620 rs for late deduction of TDS
    My Question is is this correct. Because as per my understanding I have paid amount befor 7th of next month.

    • Kapil Bajaj says:

      Date of deduction should be same as date of payment i.e 7/8/2015. Date of deposit can be 04/09/2015. Hope it clarifies …

  12. P N Rao says:

    Due to IT dept sending intimations, recently, based on Sub Registrar data, transactions which happened in 2013, and later are getting covered by these intimations. If these intimations are not properly responded there is a possibility of these recipients of notices to be treated as “Assessee in Default” exposing him to the danger of, in addition to payment of TDS, Interest and Fees u/s 234 E, the Penalty proceedings and prosecution possibilities. In each case the facts have to be seen before replying. There are grounds on which the assessing officer cannot treat the “Assessee in Default”. So facts of the issue is very important, which will be mostly unique to that transaction and the recipient of intimation has to deal it properly with a professional advice. The recipients should act quickly and respond to the intimations in a proper manner. Those who had transactions of Purchase of Immovable Property other than agricultural land and who have not received the intimation also, should take immediate action, one to reduce the the interest and penalty, if payable, and to avoid the penalty and prosecution possibilities. Unfortunately the Act has put burden on the Purchaser and not on the seller, most of whom are well equipped to deal with it. Normally the purchasers are individuals and are not exposed to the harsh provisions of Law and its Rules in this regard. P N Rao

  13. Saloni Choudhary says:

    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.

  14. Saloni Choudhary says:

    Hopefully you will get the Answer from following Article :

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

  15. Anurag Sharma says:

    Dear Experts,

    I have a query on TDS on purchase on property in case of joint ownership:

    I had booked a flat in sept 2012 with me and my wife as joint owners. We have been paying 1% TDS in either my name or my wife name depending on from whose account installment is paid to the builder (i.e. only one form 26QB per installment, but with full 1% TDS amount on installment).

    But i heard very recently that Online statement cum challan Form/ Form 26QB is to be filled in by each buyer for unique buyer-seller combination for respective share.

    Wanted to check with you that even in case of husband/wife as co-owners, we need to fill two form 26QB ? If yes, then how this can be corrected i.e. splitting form 26QB between me and my wife for the for TDS already paid.

    Thanks & Regards,

    Anurag

  16. Amruta says:

    Hi ,

    We are about to purchase the property worth 91,00,000 . We have done part payments of 4 lakh( nov 15 ) , 5 lakh( dec 15 ) and 18 lakh ( march 16 ) . we will do agreement in this month ( april 2016 ) and bank will disburse remaining amount. Till date we have not paid any TDS. And we are joint buyers. How should we pay the TDS now ?

    • P N Rao says:

      All 4 of you have to deduct TDS before making payment to the Builder and for all ready paid amounts it should be done at the earliest as it will reduce the penalty and interst. The Builder also might have advised you to remit the TDS and pay the balance to him and would have provided you with the Grude to TDS. Being joint buyers you people have to take a decision on whether you people individually pay and deduct TDS or one TDS amount for all, and what ever you decide must be acceptable to buyer also as he need to account for 4 form 16B’s he receives from you. Still you need any further clarification, you can contact me on 9449059050 or write to p_rao1956 @ yahoo .co. in

    • Saloni Choudhary says:

      you will get the Answer from following Article :

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

    • manoj kumar says:

      You have to break the tds amount and pay your share separately.

      for more clarification feel free to contact me
      manoj kumar
      9873318496

  17. andy says:

    Hi,

    I bought a property for a consideration of 69,00,000/- (sixty nine lakhs) in Dec 2013. I paid the whole amount to the seller without deducting the TDS of 1% (i.e. 69,000/-). It has been more than 2 years now. Today, I have contacted the seller regarding the same, he said he shall check and get back to me.

    Now I am aware there is a huge penalty for delay in payment of TDS. But does the penalty still apply if the TDS has not been deducted as in my case? (As the penalty applies only if the tax hasn’t been paid even after deduction) If yes, is there a different penalty for this or is it same at regular rate of 200 per day + 1.5% per month?

    And in case the seller refuses to pay me the 69,000/- TDS, what can be a possible course of action for me?
    – Do I pay the TDS money and the penalty myself?
    – Is the seller liable to pay the TDS only, or TDS and penalty as well?
    – Am I supposed to take a legal recourse?

    Kindly suggest a solution.

    • P N Rao says:

      I am not sure but what I am thinking is as the Transaction of paying without deducting the TDS, the amount was paid in Assessment Year 2014-15, the IT department right to raise the demand on You for not deducting and paying the TDS might have got lapsed for the IT Department. Any way I need to check and confirm it. As regards the seller whether you deduct and pay or not he will be liable to pay income tax on the Profit he made on selling the Property either as Capital Gains or Business Income. He cannot get away due to your lapse of not deducting the TDS. If u want to approach legal action please give a thought when it will get finalised and what you will get back from the builder, as will he pay you the interest and penalty leviable by the IT DEPT?. Regarding the first part of my answer you can check with me after few days as I am quite busy with other things. My contact no is 09449059050 .

      • andy says:

        Thank you very much Mr. Rao. I really appreciate you taking time to help me on this one. I will give you a call if required.

        • Abhijit Saran says:

          Hi,

          Can I get in touch with you.

          I have a similar query and want to understand what you did in your case.

          Please leave your number / email so that I can get in touch with you.

          I can be reached at 9818666978 / abhi.saran@gmail.com

  18. Feyha says:

    Apply for certificate under section 197.

  19. P N Rao says:

    The article is a very good one. Why I am on this page is I also got a love letter from IT Computer Department yesterday, for a very old payment made in 2014. My self is a C A and now F C A after service and I wanted to find out what is that return for TDS which I was not aware was there, I know for salaries and contractors payments there are TDS returns, but not for this. Reading the article cleared my doubt, otherwise I have to search the Act, notifications and rules and forms.
    As far as article is concerned it presented the things in a neat and clean manner as is available in the act and rules. Only few things like the amendment made in 2015, due to which now there is a doubt whether the 234 E Penalty/Interest for Late Filing of return for TDS is leviable or not, for the period before that amendment, etc have not been dealt with, may be mostly this would have been written long back, yeh it is in March 2015, and that amendment was subsequent to it. Some practical tips could have been included, so that plethora of requests on this would have come down. By and large it is a very good article.
    P N Rao 9449059050.

  20. P N Rao says:

    It is better to pay for each installment paid to the builder, this way it may be more than 5 TDS payments proposed. By paying individually for each installment you may be able to reduce the outgo on account of Interest and Penalty.
    P N Rao 9449059050

  21. P N Rao says:

    Whether the buider informed or not that TDS @1 % is to be deducted by buyer and pay it and return is to be filed by the buyer.
    P N Rao FCA

  22. K.N Vijayakumar says:

    Govt wants to catch who buys property, See the cleverness- if you buy a property of 51 lacs – govt collects actually 2 % ie ==> each 1 % from buyer & later from the seller. because the man who buys or sells will again do some thing , so Govt is having endless cycles, second they have a chance to harass you about the source of funds. See the fun- the builder -who bribes the MLA, councellor, removes mud from river, where ther is no bill, the bricks – again no bill, labour no bill / account, buy finally when the building is ready -state GOVT collects STAMP DUTY, center collects TDS from both parties, when you start living you pay to muncipality , with bribes — a great system. wheras you just occupy GOVT land build 3 or 4 flrs no body will question yoou if you pay small amount as Bribe instead of all these TDS etc. Even if the buillding is demolished in a few years it is worth, as you would have been in profit when you calculate the interest, TDS, stamp duty etc.

  23. Ankur Aggarwal says:

    HI ALL,

    we three person jointly buying a property through bank e-auction on Rs. 11273000. i was already paid 25% amount in bank,75% amount is balance. can i deduct 1% payment behalf of tds and how to deposit 1% when bank dont have PAN card. whose the responsible to deposit TDS between him.

  24. Anita Khanna says:

    Please let me know the effect of Clause 6(a), Chapter II of the Finance Act, 2015 with respect to Sec 194 IA.

    Many thanks

  25. Rajesh KumarThakur says:

    I am an NRI and need your guidance with regard to TDS.

    I purchased a flat for Rs 1.55 cr in June 2013 by paying a booking amount of Rs 750,000.00 on 19 June 2013. On 06 August 2013 I paid Rs 42,05,072 thereby making a total payment of 49,55,072 inclusive of booking amount. Remaining is yet to be paid in 2 more installments as construction is going on.

    I saw articles from you on TDS for property and checked my builders demand letter.

    It states that 1% TDS should be deducted

    Can I pay TDS now along with interest and penalty ? I didnot deduct TDS and paid full amount to builder.

    Am I liable to pay TDS and can I pay TDS now since it is over two years I made payment to builder.

    How much interest and penalty is payable ?? Kindly let me know the exact amounts to be paid.

  26. Rajesh KumarThakur says:

    I am an NRI and need your guidance with regard to TDS.
    I purchased a flat for Rs 1.55 cr in June 2013 by paying a booking amount of Rs 750,000.00 on 19 June 2013. On 06 August 2013 I paid Rs 42,05,072 thereby making a total payment of 49,55,072. Remaining is yet to be paid in installments as construction is going on.

    I have seen articles from you on TDS for property and checked builders demand letter. It states that 1% TDS should be deducted
    Can I pay TDS now along with interest and penalty ? I didnot deduct TDS and paid full amount to builder.
    Am I liable to pay TDS and can I pay TDS now since it is over two years I made payment to builder.
    How much interest and penalty is payable ??
    (I have no income generated in India but have a PAN number for purpose of property purchase)
    Request your guidance.
    Regards

  27. Dr B N Panda says:

    Mr V Swami,
    Sir,Can you pls advise me the article in Tax guru where in it has been mentioned that deduction of TDS, if has not been made may have some argument justifying same if the property in question is a flat in a housing complex.Thanking you,Dr B N Panda…bienpanda@gmail.com

    • vswami says:

      Google search FOR ARTICLES / COMMENTS on sec 194 IA should help – also look up >
      vswaminathan-swamilook.blogspot.in/2013/05/tds-woes-continues-persistently-with-no.html

  28. Aman says:

    Hi Pratik,
    I need your expertise on TDS penality calculation thatI have to pay.
    I booked an under construction flat on December 12th, 2012 and have been repaying by installments. As I was not aware of TDS I hadn’t deducted any TDS till now. Even the builder did not inform me about this and they were accepting the full amount that I have been paying them.
    I would like to know how to pay the TDS for all the payment that I have made till now? How much penalty would I need to pay? I tried to calculate my penalty using the examples you have given.. Is there a way to reduce the penalty?
    Amount paid to Builder
    dd/mm/yyyy Amt paid
    ——— ———
    08/06/2013 338173
    11/07/2013 338173
    16/08/2013 338173
    05/12/2013 338173
    05/02/2014 338173
    as per my calculation the penalty came out to Rs 38145.91(till oct 2015). Is this correct?
    How can we ask the bulider to pay back the extra amount we have already payed them. Now only possession installment is left.

    Waiting for your prompt response
    Thanks

  29. Aman says:

    Hi Pratik,
    I think I am in trouble..Need your expertise..
    I booked an under construction apartment on December 12th, 2012 and have been repaying by installments. As I was not aware of TDS I hadn’t deducted any TDS till now. Even the builder did not inform me about this and they were accepting the full amount that I have been paying them.
    I would like to know how to pay the TDS for all the payment that I have made till now? How much penalty would I need to pay? I tried to calculate my penalty using the examples you have given.. Is there a way to reduce the penalty?
    Amount paid to Builder
    dd/mm/yyyy Amt paid
    ——— ———
    08/06/2013 338173
    11/07/2013 338173
    16/08/2013 338173
    05/12/2013 338173
    05/02/2014 338173
    per my calculation the penalty is coming to Rs 38145.91(till oct 2015). Is this correct?
    How can we ask the bulider to pay back the extra amount
    Eagerly looking forward for your assistance. Thanks in advance.

    • Manu says:

      Hi Aman,

      We are in similar situation as you are in. We did’t deduct and pay any TDS. Did you get to know how to calculate interest and penalty? possible to share some pointers or details. It would really help me.

      Regards,
      Maruti.

  30. Praveen P says:

    Hi Pratik,

    I think I am in trouble..Need your expertise..

    I booked an under construction apartment on April 28th, 2014 and have been repaying by installments. As I was not aware of TDS I hadn’t deducted any TDS till now. Even the builder did not inform me about this and they were accepting the full amount that I have been paying them.

    I would like to know how to pay the TDS for all the payment that I have made till now? How much penalty would I need to pay? I tried to calculate my penalty using the examples you have given.. Is there a way to reduce the penalty?

    Amount paid to Builder

    m/dd/yyyy Amt paid
    ——— ———
    4/28/2014 300000
    5/14/2014 788493
    9/30/2014 1092386
    3/30/2015 436170
    5/28/2015 436174

    per my calculation the penalty is coming to Rs 31806. Is this correct?

    Eagerly looking forward for your assistance. Thanks in advance.

  31. Ranbir Vasudeva says:

    Hello Pratik,

    As per your example explained above, I am taking out an excerpt below:
    “For example: If Rs. 10,000 tax was deducted on 25th April 2014, same shall be deposited with the government account till 7th May 2014. But if the same is paid say by 7th June then, Interest will be calculated as follows: Months of default: 3 (April to June) Interest Rate: 1.5%*3=4.5% Amount of Interest: Rs. 10,000*3*1.5%= Rs.450/-”

    Since, the tax could be paid till 7th May (7th of coming month) without interest, could you please help me understand why is there a default of 3 months?

  32. Prerit says:

    Mr Pratik.
    Very useful article. not touched the point – what to do in case buyer directly sells the property to another party. Ex: A sales to B for Rs 1.00CR, B makes part payment of say Rs 25 Lac, and now B sells it to C for Rs 1.2 Cr, and registry will be made by A to C.

  33. Rajiv Batra says:

    I have purchased a property of RS92 laks,on 17.08.2015, sellers are co-owner, i forget to deduct TDS and paid amount by chq to both owner of 46 laks each, one seller have clear the chq, and other chq is not yet clear, registry of property is executed in my name and no TDS details have been made in the registry,
    Now can i file TDS , and can i deduct TDS from 2nd seller of Property by replacing of Chq

  34. NIRMAL says:

    If i have bought a property in october 2014 amount rs. 60 lacs. and i forgot to deduct TDS.
    If i deduct TDS now. ( 13th august 2015)
    what will be the Interest &

    more importantly

    how will be the late fees calculated on Late filing of TDS return.

    please guide.

    nirmal
    9829092828

  35. Viral says:

    I am a joint buyer for the property. by mistake a i paid full TDS for the property from 1 account instead of equally deviding between both the buyers. Can you please tell me what should i do now to revert it back?

  36. Shiva says:

    I am the seller. The buyer deducted the TDS and gave me the challan, but not form 16B. My auditor says he needs the form 16B, without which the refund is not possible. Current the buyer is not approachable, so please advise what can be done,

  37. dinesh says:

    Based on builder’s request the bank disbursed 5 payments to the builder after 1-Jun-2013.
    2 payments made in 2013
    1 payment made in 2014
    2 payments made in 2015 so far
    As I was not aware of TDS rule which came out in 2013. I did not paid the TDS.

    I need help on some questions:

    1. Shall I pay one time TDS of the total sum disbursed to the builder? What FY year shall I select?
    Or
    Shall I pay TDS for all individual payments done in respective years starting 2013-14? So there will be 5 TDS payments, one for each payment made to the builder.
    Or
    Shall I combine amount disbursed for each year and submit 3 TDS payments? One for each year.
    2. Is there any penalty I need to pay? If yes then will this be taken care at the time of submission of TDS online (tin-nsdl.com) automatically?
    It seems like builder is not helping and not replying to my questions. I am worried about how will be pay the missed TDS payments, what will be the interest or late payment charges

    Any information which can help me to simply the missing pieces and submit the TDS asap will be appreciated.

  38. Mohit Gupta says:

    Hi,

    I have a question: What if buyer hasn’t deducted the TDS amount while making the payment at different occassions? The builder never mentioned that to the seller. So in that case, buyer still need to pay the penalty on the TDS amount owed?

  39. Girish Kerur says:

    This is too cumbersome, Why can’t they collect it during registration process itself to make common man life simple?

    I don’t understand why 1% TDS Rule is made. Any way one who bought property worth >50L is already paying huge amount of Stamp Duty and Registration charges & other Taxes. Govt again wants additional 1% as TDS !!

    Government is trying loot people. It must be protested and this rule must be withdrawn by Govt.

  40. SANJAY says:

    PL. PROVIDE THE FORM NO./ITNS TO FILE THE LATE FILLING FEE U/S 234E AND INTEREST U/S 200A TOWARDS TDS ON PROPERTY DEPOSITED BY US FOR 4-DAYS.

    THANKS,

  41. Rajesh says:

    Iif I pay TDS now for an instalment that was paid in Oct 2013, what should be the financial year selectef in Form 26 QB. My builder says that he would only give me credit for the TDS paid if the FY selected is the current one or the previous one.

  42. Puneet says:

    I am a NRI and bought a property in Hyderabad in 2012. Based on builder’s request the bank disbursed 5 payments to the builder after 1-Jun-2013.

    2 payments made in 2013
    1 payment made in 2014
    2 payments made in 2015 so far

    As I was not aware of TDS rule which came out in 2013 and my builder also did not informed me about the same, I did not paid the TDS.

    Now I know the process of filling the TDS but I need help on some questions:

    1. Shall I pay one time TDS of the total sum disbursed to the builder? What FY year shall I select?
    Or
    Shall I pay TDS for all individual payments done in respective years starting 2013-14? So there will be 5 TDS payments, one for each payment made to the builder.
    Or
    Shall I combine amount disbursed for each year and submit 3 TDS payments? One for each year.

    2. Is there any penalty I need to pay? If yes then will this be taken care at the time of submission of TDS online (tin-nsdl.com) automatically?

    It seems like builder is not helping and not replying to my questions. I am worried about how will be pay the missed TDS payments, what will be the interest or late payment charges and how will I ask the builder to take care of these payments and deduct from the future requests.

    Any information which can help me to simply the missing pieces and submit the TDS asap will be appreciated.

    Thanks

  43. amit arora says:

    Hi All

    I have also received a rectification notice to pay interest on late deduction (I am also confused what is the difference between interest on late payment and interest on late deduction).

    Please guide do we need to pay this as well now? If yes, how?

    Their contact center cant help saying they dont have much knowledge on the subject.

  44. Priju Thomas says:

    Ditto Sundeep…

    ON inquiring @ their toll free no… I was asked to send a mail to contactus@tdscpc.gov.in .. which I did.. giving all details of my initial demand payment and the new rectifed demand whihc was lower !!

    HOwever, no response whatsoever from them.. despite sending reminders !! As u said Loss of time, money & energy for a common man !!!

  45. Sundeep says:

    After already paying the initial demand received against 26QB, now I have received the rectified demand for lesser amount. God knows how and when they will refund the access amount already paid by us and how they will settle this new rectified demand. Loss of time and money for ordinary people.

  46. Ram says:

    Should we use seperate Form 26QB for each payment of instalment to the builder, or can we use the same 26QB Ack No of the first instalment payment for all subsequent instalment payments?

  47. Nishant Sharma says:

    Hello Everyone.

    I need a answer to this. Like we have form 15G/15H for nil deduction of TDS for saving banks FDs etc. Is there any such provision for nil deduction of TDS on property in case seller has income less than taxable (and a senior citizen).

    Please let me know as I have to buy a property from such a senior citizen how is a bit reluctant to get this TDS deducted.

    Thanks

  48. Santosh says:

    “Late Fee u/s. 234E” field on Bank of Baroda & Bank of India website is grayed out. Amount cannot be entered. What should be done ??? Any ideas ???

  49. Manish says:

    Hi, there is a confusion while paying thru this new link.

    There is an option to pay Interest but not for late fees. Options are Interest, Penalty, Fees and Others. Should we pay Late fees under Fees, Penalty or Others?

    A quick help would be appreciated

  50. Vivek says:

    I ahve already paid the default amount ( late fee and interest fee) through Form 26QB, beforeactivation of the new link. What shouble be done now? ALthough I have have sent the mail at contactus@tdscpc.gov.in

  51. Karan says:

    Manoj W,

    You can still file an appeal. You can argue that as a layman you were unaware of the procedures to seek redress and nor that the TDS demand notice inform you that it can be appealed against. Slight delay can always be condoned. Filing an appeal is not that tedious. You just need to know where the Commissioner of Income Tax Appeals TDS is.

  52. Priju Thomas says:

    Just paid the Demand for Interest & Late filing Fee.

    Use either of the following link
    https://www.tin-nsdl.com/e-pay-furnish/e-payment.php
    https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp

    Thot the recourse via appeal etc. was quite cumbersome and time consuming, no online method available.. The appeal process vide Form 35 is to be done personally and face to face ! And then again we are on the mercy of the whims of the IT officer ! Not worth the time & effort !

    Also guys if you have decided to pay, please do it within tomorrow, as otherwise TDS CPS will be auto-issuing demands for simple interest for the delay on unpaid demands, post tomorrow ! So either pay up or file the cumbersome appeal within 30 days of the Demand, which also shud be over by now !!

    Whats more annoying is that the Builder from whom I bought the Property is not heeding to any call for an ethical sharing of this damage, though we are supposed to be properly guided by them !!! Screwed from all ends !!!

    AccheDin Truly !!!! 🙁

    • Ron says:

      Hi Priju,

      The rule was introduced in 2013 by Mr Chidambaram.. as usual the flaw was onus was put on general public leaving builders.. any guess why.. DLF ? So nothing to do with present govt.

      Now what you are seeing is effect of that amendment. The only part this can be corrected , is as someone suggested it should be part of property registration process, so builder and banks have to inform buyer about TDS requirement.
      Second the deposit process can be simplified.

      Now regarding penalty and fees consult CA he might guide well. Unofficially I can say do no pay, however send email to Jaitley and hope he brings amnesty and fixes the issue.

      Acche din will not come by itself, you have to tell govt what is acche and bure for you…

      Cheers

      Ron

  53. uday says:

    At last …we have to pay
    As a revenge, i did not got refund of 11-12. Earlier i left it to fate Now i am going to file RTI for it

  54. Navin says:

    I Just want to pay this default on TDS for my 26QB however the link does not seem to work

    onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp#sthash.0NaHYxzq.dpuf

  55. Manoj W says:

    The new link for Demand Payment is now active here:

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

    It seems inevitable now. However, as Karan mentioned, is it possible to appeal against this demand notice using Form 35? And what can be done after 30 days? I have exceeded the 30 days time frame too.

  56. Vinayak Bharadwaj says:

    If the builder, to whom I am making an installment payment, charges me interest on late payment of installment, then is TDS deductible on the interest element as-well or only the installment amount? And if deductible on both what percentages will apply?

  57. Shailesh S Nerurkar says:

    Hi,
    I have received a notice for late payment of TDS u/s 200(A), I have to pay penalty and fine. Can you advise how to pay this online. 30days period for payment of these dues is getting over on April 30th, should I be using 26QB or is there any other form.
    Thanks,
    Shailesh..

  58. Ankur says:

    I am a little surprised reading the article at

    http://taxguru.in/income-tax/penalty-234e-fetches-revenue-whooping-rs-17497-crores.html#sthash.uU77O5wj.dpuf

    I think the general consensus on this forum is that there is no means available to pay the interest and late fee for TDS pertaining to immovable property. If that is the case, are the assertions in the article correct? If the assertions are correct, there must be a mechanism to make the payment that the group doesn’t seem to be aware of. Would love to get some inputs here.

  59. Manoj W says:

    Second update:

    Dear Sir/Ma’am,

    Thank you for contacting us, it is our pleasure to assist you.

    In reference to payment of demand related query against form 26QB, it is to inform you that a new link will be available at tin-nsdl.com for payments of Demand related to 26QB from 1st May, 2015. Therefore, you are requested to wait till that time.
    The interest u/s 220(2) will not be applicable on such payments made till 02nd May, 2015

    Note:”It is to be informed that facility for Grievance registration as an Effective Module Online Facility for Grievance handling is now available at TRACES site. All registered deductors are requested to please register their issues through TRACES portal after logging in to your account. Kindly note that this facility is available only to Registered users. You may navigate to Communication Tab (available at your login at TRACES) to locate “Request for resolution” and raise a Ticket for Resolution of your query/ Grievance. For more details on “Request for Resolution” please refer E Tutorial available on our website at below mentioned link: contents.tdscpc.gov.in/en/request-for-resolution.html”

    Regards,
    Team TDS CPC

  60. Raghu says:

    I have received a notice for late payment I have to pay penalty and fine . can you advise how to pay this online. should I be using 26QB or is there any other form. How should the fine and interest specified in this form

  61. Uday says:

    I also called TIN call center. I new link will be vaiable to pay the fine in next month.
    So will there be fine again?

  62. Priju Thomas says:

    http://taxguru.in/income-tax/penalty-234e-fetches-revenue-whooping-rs-17497-crores.html

    This is looting the public in daylight !!! Truly Acche Din !!!!

  63. Aditya says:

    I just called the TIN call center and they informed the new payment link will be available in next month.

  64. Uday says:

    What is the procedure to pay the fine? Only 4 days lefts.
    I was considering to pay it via Challan 280 and 400. However Manoj w is saying he got reply from TRACES website that new link will be available.
    Manoj share more information on it or should we go through 280/400.

    This type of confusion was present at the type of payment of TDS itself. I congratulate ITD for making it consistent feature.

    Thanks
    Uday

  65. Chintan Kanakia says:

    Hello,
    I have received a late payment intimation u/s 200A for the late payment of TDS for sale of property. Kindly guide me how do I pay this late fee online please?

    What I understand is that we have to fill in Form 26QB which will ultimately generate challan 280? Please confirm.

    Secondly, I have received separate intimations for 2 transactions? Does this mean I have to repeat the procedure twice?

    Thirdly if I have to fill in 26QB, in the area of tax details should I mention tax as Re. 1 and then put in late payment in fees ?

    Thanks

  66. Chintan Kanakia says:

    Hello,

    I have received a late payment intimation u/s 200 for the late payment of TDS. Kindly guide me how do I pay this late fee please online?

    Thanks

  67. Aman Kumar Singh says:

    I Have received an intimation for interest on late payment and Late filing fee u/s 234E while processing of 26QB Statement (TDS on immovable property). Kindly guide me as to how to make the payment. Which form to use and how to fill in the details?

  68. Karan says:

    I don’t think one has to pay the late filing fee if one has filed an appeal within 30 days of receiving the order.

  69. Karan says:

    For filing an appeal, Rs250 has to be paid through challan 280 under self-assessment tax. Select others and not basic tax while paying Rs250.

  70. Karan says:

    To file an appeal against late filing fee, one needs to fill form 35 mentioning the details of the demand notice, your grounds of appeal and copy of the demand notice to file an appeal with Commissioner of Income Tax TDS in your city. In your grounds of appeal, you can mention that late filing fee was meant for employers and banks and not for the lay public, the tax authorities did not adequately inform the lay public regarding the late filing fee being applicable to TDS on property, the lay public does not have legal and tax expertise at their disposable and reasonable time should be allowed to them to comply with the new law. Interest on late payment is reasonable but late filing fee is unreasonable and unjust.

  71. SANTANU SEN says:

    Dear pratik,
    Please advise me which challan to be used for default notice u/s 200 A for late payment of TDS. A late fine and interest is imposed by ITD.Thanks in advance.
    Regards,
    Santanu Sen

  72. Manoj W says:

    Update:
    I got a reply from TRACES regarding the payment

    Dear Sir/Ma’am,

    Thank you for contacting us, it is our pleasure to assist you.

    In regards to payment of demand related to 26QB, you are requested to wait till last week of April, 2015. A new link will be available at tin-nsdl.com
    for payments of Demand related to 26QB

    Regards,
    Team TDS CPC

  73. Ani says:

    Some of us might find it too difficult to pay these penalties while stretched to the limits arranging installments which already include so many taxes and levies(all that money goes out from your pocket; builder just includes in their pricing without affecting his profit margins). Why not approach your representatives in Parliament, at least your genuine voices will reach the Govt, otherwise who cares if you choose to suffer in silence.

  74. Manoj W says:

    Those looking to pay the demand raised by IT dept. u/s 200A for the late payment of TDS on sale of property, use Challan 280.

    Under “Type Of Payment” select (400)TAX ON REGULAR ASSESSMENT

    And on the tax payment page of your bank’s website:
    – Enter the Interest part (i.e Sl.No 1, 2 and 3 of Defaults) in ‘Interest’ field, total rounded off
    – Enter the Late Filing fee u/s 234E (i.e. Sl.No 4 of Defaults) in ‘Others’ field.

    This information is correct to the best of my knowledge, however, please contact your CA or TRACES website to get it verified. This is what I could gather from all the posts on the net and from my CA

  75. Vivek says:

    Has anyone filed the appeal to CIT TDS.
    If we file the appeal and the due date of paying the late fee & interest fall before any response from CIT, should the payment need to be made.

    Regads,
    Vivek

  76. sangam says:

    Thanks pratik for this useful article. I just have a small query, I had paid the TDS after 2 weeks of the due date. I was not sure about the penalty clauses , so I didn’t pay interest and late fee. What should I do regarding this. Please reply .

  77. Abhi says:

    Thanks Pratik for your advise. Can you please share some details on the process for appeal or request for correction. I am thinking of sending them an email but not sure how to articulate my point.
    Thank you Rawal for your comment.
    For a 50L property you paid 50K TDS and now need to pay another 50K as late fee because there was a delay in filing the TDS + the interest. This is very unfair. There was absolutely no info on how to pay for joint buyers, what property price to be used (incl. of car park, taxes, etc etc). No indication that you’ll be charged a hefty late fee. I think we must contest this decision. We are completely in debt already how can we afford this.

  78. Pratik Anand says:

    Mr. Abhi,

    Appeal can be filed with CIT(TDS) having jurisdiction over your area. This appeal will be a normal appeal as all other income tax appeals.

  79. Rawal Singh Bhati says:

    @Abhi you cannot take ground of this reason that builder and bank dont support

    Since liablity of 194IA is executed upon (1) Any person, being a transferee, responsible for paying to a resident transferor.

    2nd reason that Rs 200 is not penalty it is Late Fee hence ground which available for penalty is not available in case of late feel

    Although you can file appeal against order/notice but you have to tell us that under which section notice/order is issued so accordingly appeal will file

  80. Abhi says:

    Hi Prateek – What is the way to appeal against this unjustified penalty, 200 per day for those of us who wanted to comply when there was no support from either the bank or builder and very little information available.. Thanks.

  81. Rawal Singh Bhati says:

    @santu

    Please send SnapShot of order of payment of interest and latefe issued by department. on whatsapp

    No.8963013175
    Thanks

  82. Anurag says:

    Can anyone please let me know how we can Deposit the Interest on late payment & Late Fee u/s.234E for delay in filing of 26QB challan cum statement u/s.194-IA_TDS on sale of Immovable Property.

    Regards

    Anurag

  83. Santu says:

    Pratik,

    Is it possible to put zero TDS amount in 26QB form and pay late fees and interest rate.

    Thanks

  84. Santu says:

    Pratik,

    I have also got notice to pay late fees and interest rate. Can I fill form 26QB in which I can fill tax rate 0% and pay fees and interest only, because I have already paid TDS. Please confirm it. Thanks.

  85. raghavan says:

    Dear Sir,

    Please send procedure for Sale of Pproperty Interest Remittance. Site asking PROPERTY VALUE RATE AND TAX IN MANDATORY. BUT I NEED TO PAY ONLY INTEREST PORTION ONLY. HOW I MAKE PAYMENT ONLINE. WITHOUT FILING THAT TOTAL VALUE INTEREST AND TAX CANNOT BE PROCESSED. NOW I WANT TO PAY ONLY INTEREST AND FEES ONLY. PLEASE GUIDE TO ME ANY ONE

  86. D K Sharma says:

    Thus it means that the due date of filing the TDS statement in these cases is 7th of the next month in which tds @1% was deducted ( minimum period is 7 days given if the person deducts TDS on 30th or 31st of the previous month . However in other sections, 192 or 194 or 195 for filing the TDS return there a minimum period of 15 days is given, if the TDS was deducted on last day of that quarter except in case of March quarter , where time limit of 45 days has been allowed. Thus if I have deducted TDS of Rs 20000/- on 1st April 2015 and deposited the same on 7th May 2015 , the due date of filing the TDS return is still 15th July 2015 ( Thus it means that The provisions are somewhere are not consistent with the rules made earlier for other Sections of Cheapter XVII-B.

    These should be amended and relief should be given to these individuals also.
    regards
    DK

  87. Venkat says:

    Pratik, thanks for the article. I too have received – defaults have been identified … etc. It comes out to be an hefty payment. One would not have defaulted, if regular communication / educating article on this subject would have been published by the government. All I remember is, asking the builder, for guidance and initial response was, he is also ignorant and asked me to pay fully (i.e. without deducting TDS). After, a number of installments, and regular follow-ups, he advised to deduct and pay the TDS for all the previous installments and regarding due date, I was informed, by the financial year end. Hence I was under the impression that the same has to be paid by the financial year-end. It is sad that, when enacting this rule, requiring the common people to deduct and pay tax, regular information could have been provided. For e.g. a circular with proper information sent to all builders, requiring them to educate their purchasers. Since, this enactment is recent, to charge such high interest and penalty is also very very sad. It is a very very costly way to learn that, one has to deposit with in 7 days of the end of the month in which payment was made!

  88. Uday G says:

    It is the same feeling here. This is squarely disgusting.

    On one side the Finance Minister defends his stance that he is not indulging in Tax Terrorism. These notices without any education to buyers, amount that.

    In the notice there is no method, on how to pay, what is the appeal system, etc etc.

    These laws are so convulated, that there is not option, but to pay. Even my wife will pronounce me careless and stupid, for this money that I have denied her some material possession.

    Sad!
    Uday

  89. Uday says:

    This is frustrating situation!! I got to pay 22000 rupees as fine for it.
    Whom we can balme for this situation? This is autocratic law to apply hefty fine on taxpayers without properly educating the people. The goverment of india wants people to listen to parlimentary session on budget to make them aware of Rs200/day fine for non-compliance.
    The basic question why the govement is putting more burden indivual taxpayer than on big fish. Why this tax is not paid by builder?
    is he busy delveloping infrastracture for poor people of india to live?

    Nobody cared to inform buyer about this situation. Builder were happy to recieve cheques and banks were happy to give them. I came to at the time of last installment that it is mandatory to pay this amounnt. By this time i had exhausted all my Cash and all other options. Bank did not to arrage this 1% money. I had to take Gold loan specially to pay this at last minute to take possesion of flat.

    No one cared to inform it earlier. My wife blame it on me (whats the use of watching news channels?)

    This fine of Rs200/day is too much for individual taxpayer who finally managed to get shelter from big shark builder.

    Whom can i blame for this? it is me not watching TV? Shark builder for not inofrming me? Bank who paid no attention to it untill last cheque?

    Hope they will make sense of this law!!

  90. Anil says:

    I am wondering how a Harvard educated Finance minister and bureaucrats which I thought are best brains in the country can fail to apply basic logic while framing laws/ regulation. It appears that over education can damage your brain!! This type of law can only exist in autocratic setup not in democracy. First it is highly unjustified that Govt is giving the responsibility of filing taxes for someone else’s income to ordinary citizens. In most cases the sellers are big real estate companies who can afford to have the staff, computer internet connection to pay their income tax. Second, sudden implementation without any plan to educate the affected people and test the system for issues , concerns etc. To make it worst the penalties now being imposed and then no review even when forums are abuzz with concerns.

    Moreover NRIs did not have access to TRACES for long time after the implementation of this rule.(website was not accessible from abroad)

    Now to make it worst, one sided communications without response to emails from customer care. Long live such democracy!

  91. Thanikasalam says:

    Please let me know how to pay late fee thru online method. It’s very urgent. Please do the needful

  92. Sanjeev Rai says:

    Hi Prateek

    I along with my wife purchase a property in June 2014 , the total consideration was 66 lakh. We paid 55 lakh through our own source and bank finance after deducting 1% TDS . But the TDS I paid is from my account only although loan is in joint name , property is in joint name with equal share. I have to pay 10 lakh to builder as final instalment, kindly guide me how can I rectify my error.

    Regards
    Sanjeev

  93. Maninder Prashar says:

    Hey Pratik,

    I too have received the demand notice. I see, we have to make payment of late fee and interest through Form 26QB. Can you please elaborate steps to fill same? In my case, there were 4 challans earlier, since there were 2 buyers and 2 sellers. Do I have to make payment 4 times for late payment or can that be done in a single form. Also, what all fields do we fill now in the form – do we have to fill only the Interest and Fee fields or Total Amount Paid/Credited, Please enter TDS rate, Basic Tax (TDS Amount to be paid) etc fields as well?

    Please let me know.

    Thanks,
    Maninder

  94. saurabh gupta says:

    Hi Pratik,

    Can you please elaborate the steps to pay the late fees also. It would be really helpful.

  95. Pratik Anand says:

    Mr. Anil,

    we can file appeal to CIT TDS first.

  96. MANSOOR JAFRI says:

    Consideration 75 lakhs on 25/03/2015
    A- transferor

    Transferee
    B
    C
    D
    Who will get benefit of TDS
    B-75000/ or B C D individually 25000/-
    advice requested

  97. Kapil says:

    Can some one tell the procedure and format to challenge the TDS Late Payment u/s 234E Notice by Income Tax in High Court?

  98. Anil says:

    Dear Sir,

    This seems undemocratic to me. Buying our needs is our right and not an offence that we are now being penalized. I will have to pay no less than 30000 because of this law even after I have deducted and paid TDS. Only fault is that I am not attending parliament proceedings so that i would know what laws are being passed or amended. I came to know of this bit late and builder kept raising demands asking to submit checque of full amount. At least govt could have made it obligatory on the builder to alert /educate the buyers. More over it came into effect from already signed agreements. I am talking about construction linked apartments.
    Income is to the seller so he is responsible to pay tax on his income. Tomorrow if Govt applies such rules to items like your milk and bread or anything of your basic needs, would it be justified. Why cant they ask the builder to deposit the tax on his income. May be because builder need to relax while common citizen have all the burden to get govt vaults full.

  99. Akkshay Arora, ca says:

    The payment of late fee u/s 234E and Interest shall be paid through challan ITNS 280. Choose minor code 400 and input interest in interest column and late fee in others column. Once paid mail the acknowledgment to contactus@tdscpc.gov.in giving reference of the 200A intimation and your 26QB filing acknowledgement no. This would constitute sufficient compliance.

  100. Maninder Prashar says:

    Can this be challenged in court or a petition be filed against this notice? We understand that provisions have been mentioned clearly now(but nothing was clear when this law came into force 2 years back – that’s the reason we see so many defaulters), but does that make sense to charge the whole amount from someone as late fee, who has already paid the TDS(be it late) earlier, though charging interest on late payment is justifiable.

    Please let me know.
    Thanks.

  101. Shashank says:

    Hi Pratik,

    I made payment to the seller before 01-Jun-2013. Do i need to file TDS for that amount?

  102. Hariprasath says:

    Very nice article indeed.

    Please let us know the methods of payment for paying the interest and late filing fee u/s 234E. This has become the need of hour for many here including me. It is a pity that ITD has sent out the intimations for 26QB defaults without properly informing the ways to make the payment.

  103. Nitin Agarwal says:

    In my case.. it is under construction property, so I keep deducting TDS after every demand from builder…. now I realize that due to lack of knowledge, I had deposited TDS later than 7 days from end of the payment month and am getting default notices from Income Tax dept. so in my case, there are multiple such occasions and have received notices for default. is there a way to save this? if not, what is the process of paying these penalty amounts?? please advise? thanks

  104. Anand says:

    HI Pratik,

    Nice article.

    A friend received a notification for paying interest and late payment fees.

    Can you please advise on the Challan to be used for paying these? Should it be Form 26QB or Challan 282?

    Regards,
    Anand

  105. Ashok Sharma says:

    Hello Pratik,

    Very good article indeed.

    However I am facing one problem. I deposited TDS using 26QB in the year 2013 which was two days late and now I received a notice from IT to pay as following:

    1. Short fall of deduction: 0.36
    2. Late fees deposit: 400
    3. Interest on late payment: 36

    In that case could be able to let me know as how to make this payment to IT department online using which challan?

    Thanks in advance!! regards, Ashok

  106. AK says:

    Pratik…very well explained, thanks!
    I am repeating one of the question raised on the forum, this is very good question & still unclear. Can you please share your views?

    Will the provision u/s 234E apply if the purchaser of the property while making payment to the builder fails to deduct TDS (for want of knowledge) but subsequently files Form 26QB and simultaneously deposits TDS, which he failed to deduct earlier,from his own source to be adjusted against future installments due to be paid to builder.

    In this case there is late deduction of TDS, but same is deposited immediately after deducting. What kind of interest & penalty will be applicable here?

  107. pulak sarkar says:

    Please advise me which challan to be used for default notice u/s 200 A for late payment of TDS. A late fine and interest is imposed by ITD.

    regards
    P sarkar

  108. Kedar says:

    Pratik, please advise on what challan to use and the related entries for late payment

  109. Y.Kumar says:

    The TDS is attracted only if the consideration exceeds Rs. 50 lacs. A fresh example may be given, as the given example is for Rs. 10 lacs.

  110. Gaurav says:

    Hi Pratik, could you also layout the steps for paying the late fee (234E) online. That would be immensely helpful.

  111. Ratan Sabharwal says:

    Article covers all the aspect of this section, especially the example quoted at the end of every section keep it up………..

  112. SK Agarwal says:

    Will the provision u/s 234E apply if the purchaser of the property while making payment to the builder fails to deduct TDS (for want of knowledge) but subsequently files Form 26QB and simultaneously deposits TDS, which he failed to deduct earlier,from his own source to be adjusted against future installments due to be paid to builder.

  113. AD says:

    After depositing the tax with government , does an assessee have to file return of TDS in applicable quarter?

    Suppose Mr.A purchased a flat from Mr B. of Rs.1 crore on 28.2.2015 and paid the amount. So on 28.02.2015 he deducted tax of Rs.1 lakhs and deposited the same to the government on 5th March 2015,

    Is Mr.A liable to file return of TDS ???

    and MR. A gets his accounts audited and according to the provisons of IT, act he has been issued TAN no. to deduct tax. But in this case Mr.A purchased property for his personal purpose?? So is he compulsorily liable t Quote his TAN No. in form 26QB or his PAN No.??

    please reply.

  114. Ashok Deora says:

    Pratik:

    Timely and well covered….

    CA Ashok Deora
    09840051184
    Chennai

  115. vswami says:

    IMPROMPTU

    According to a view as canvassed, with cogent reasoning, and,in one’s view -on sound logic, in a published article on this very website, in cases where the ‘immovable property’ is a ‘unit’ of a building, commonly known as Flat or Apartment, the requirement of TDS may be pressed to be not applicable. Despite drawing the attention of the Revenue to the seemingly unintended but obvious lacuna in the law, no remedial action is known to have been taken so far. Perhaps, this is an aspect which is worthwhile to be kept in mind, and if so pushed to, urged as a defense, after taking a competent professional (in practice)’s advice and with his assistance, if faulted to have failed to comply without a reasonable cause and sought to be treated as an “assessee – in-default” and visited with any of the consequences.

Leave a Reply

Your email address will not be published. Required fields are marked *