Article explains Provisions of Section 194I related to TDS on Sale of Property with value exceeding or equal to Rs. 50 Lakhs. It explains When your are liable to deduct TDS on Sale of Property, When to deposit the TDS to Government after deduction, How to make payment of TDS to Government, Details required for filing the Form 26QB and how to Request for Form 16B [TDS Certificate for Sale of Property]
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1. When your are liable to deduct TDS on Sale of Property?
As per provisions contain in sec 194-IA of Income Tax Act, if any buyer responsible for paying to a resident seller any amount exceeding or equal to Rs. 50 Lakhs for sale of immovable property other than agricultural land, then the buyer is required to deduct TDS @ 1% of consideration for transfer of immovable property.
As per Finance Act 2019, Consideration for transfer of immovable property shall include all charges of the nature of club membership fee, car parking fee, electricity or water facility fee, maintenance fee, advance fee or any other charges of similar nature, which are incidental to transfer of the immovable property.
Even when the amount is paid in installments, then even you are liable to deduct TDS @ 1% on the amount paid if the total amount paid is equal to or exceeds Rs. 50 Lakhs.
TDS is required to deduct irrespective of type of property whether it is land or building or vacant plot, residential or commercial or industrial property.
If GST is levied on transaction value for purchase of property, then TDS would be deducted on the amount excluding GST amount.
2. When to deposit the TDS to Government after deduction?
After deduction of TDS on the amount, it is to be deposited to Central Government within a period of 30 days from the end of the month in which deduction is made and it should be accompanied by a statement in Form 26QB. [Rule 30(2A)]
Also Form 26QB is to be filed within a period of 30 days from the end of the month in which deduction is made. [Rule 31A(4A)]
3. How to make payment of TDS to Government?
Following steps are involved while making the payment of TDS :-
- First go to the website tin-nsdl.com.
- Click on the tab Services and then click e-payment : Pay taxes Online.
- After that a new window will be open, that contains different challans for payment of TDS under different sections.
- Click on proceed on TDS on Property (Form 26QB) tab (in third row first column).
4. Details required for filing the Form 26QB
In the First Tab (Taxpayer Info) following details are required to be filled:
- Tax Applicable
- (0020) Corporation Tax (Companies)
- (0021) Income Tax (Other than Companies)
Select code 0020 if you are a company (person deducting TDS), otherwise select 0021 for persons other than company.
- Financial Year– It will be auto populated on the basis of Date of Payment / Credit filled in the form.
- Assessment Year– It will be auto populated on the basis of Date of Payment / Credit filled in the form.
- Type of Payment– It is auto selected as (800) TDS on Sale of Property.
- Status of Payee / Seller / Transferor– Select Resident or Non-Resident .
- Permanent Account No. (PAN) of Transferee (Payer/Buyer)– Enter the PAN of Buyer which is compulsory required to fill the form. After filling the PAN, it will automatically confirm the category of PAN of Transferee whether it is company, individual etc.
- Permanent Account No. (PAN) of Transferor (Payee/Seller)– Enter the PAN of Seller which is required so that it is reflected in Form 26AS of Seller and he/she can claim TDS on sale of property while filing Return of Income.
In the Second Tab (Address) following details are required to be filled:
- Complete Address of the Transferee (Buyer)– It also require whether there are more than one transferee / buyer.
- Complete Address of the Transferor (Seller)– It also require whether there are more than one transferor / seller.
In the Third Tab (Property Details) following details are required to be filled:
- Complete Address of the Property Transferred– It includes details like type of property whether it is land or building, Date of Agreement / booking, Total Value of Consideration, Payment Type (Lump sum or Installment).
- Amount paid / credited– Enter amount in figures and words.
- Tax Deposit Details– Provide details like Total Amount paid / credited, Basic Tax , Interest , Fee (if any).
In the Fourth Tab (Payment Info) following details are required to be filled:
- Mode of Payment– Select e-payment immediately or on subsequent date.
- Date of Payment / Credit
- Date of Tax Deduction
- Captcha Code
Date of Payment / Credit and Date of Tax Deduction is required to calculate the interest, fee if any which is required to be paid in case of late payment.
After payment of taxes, Challan is generated which is the proof of payment of TDS.
5. Request for Form 16B [TDS Certificate for Sale of Property]
- Request can be made at tdscpc.gov.in after creating New ID as Tax payer.
- Generally after payment of challan, it takes 4-5 working days for processing of challans, only after that you can request for Form 16B.
- Form 16B is itself an evidence that TDS deducted on payment to seller has been deposited to government.
Author Bio
Is TDS applicable in case of transfer of property through gift deed and release deed? If the value exceeds 50 lakh
If the transaction involves consideration, then only TDS is to be deducted.
Hi
I (Buyer) have bought land from S (Seller). Property value of S is 71 Lacs but deal Between Seller & Buyer 40 lacs.
but property is under construction and party S (seller) not hold the possession due to builder not handover the property.
Seller paid 40 lacs as advance to builder now i B (buyer) bought the property from S (Seller) of Rs 40 lacs.
can we eligible fordeduction of TDS 1% (40 Lacs @1% 4 lacs.
Is the TDS applicable per property exceeding 50L or on cumulative purchases in a financial year?
Eg. in June if I buy a property worth 35L and in Dec another property worth 45L will I still have to pay TDS?
Could you please explain? Thank you !
TDS is applicable on per property basis.
I am selling an apartment which is valued more than Rs50 Lakhs to a buyer. However, the buyer name on agreement is different to the payee account name. Basically the agreement is being made on fathers name, but the amount will be credited by his son from the son’s account. So for TDS, who’s name will the challah be in? Father or son?
I’m planning to buy a vacant land worth 60 Lakhs. So as per the norms, I need to pay the TDS of 0.75 or 1% from the property value. I believe generally during Year end tax submission using Form 16B the benefits of TDS will be utilized by the seller only . Since the Buyer have to bear the expenses for TDS, do we get any certificate or acknowledgment with Buyer name ?? or do we have any process to utilize the Benefit of TDS from Buyer end
TDs of 0.75% is to be paid if deduction is to be made upto 31.03.2021, otherwise TDS of 1% is to be deducted and paid. TDS is deducted on Income and the capital gains which arise from the sale is the income of the seller. Therefore benefit of TDS is available to the seller. Form 16B is to be provided by you to the seller as a proof of TDS deduction and deposit to the Government.
Hello,this is Sharan ,I’m a properiotor of a hospital took a franchise of a running hospitals all over India. I purchased it with paying all amount of instruments with gst. Now after 2years I want exit from franchise.company is paying me 12lac on installment base for 6month *2lac per month .is there need to deduct tds per month
I Purchased a properties along with 12 % GST which I paid..My properties value is around 61 Lacs ..So tala I paid GST 12% and value of properties is around 70 Lacs .So I have a urjent query still do I need to pay TDS again ???? Please reply
You have to deduct TDS on value of property excluding GST which in your exceeds Rs. 50 lakhs.
I bought a property in joint names for 3 Cr on 20th Dec 20 in short and agreement registered on 22nd Dec. 1st token paid 5 lakhs and 50 lakhs on 31st Jan 21 and balance to be paid on 15th March 21 from loan. What is the date of credit for TDS calculation and when should I pay TDS with or without interest ? Pl clarify
I bought a property in joint names for 3 Cr on 20th Dec 20 in and agreement registered on 22nd Dec. 1st token paid 5 lakhs and 50 lakhs on 31st Jan 21 and balance to be paid on 15th March 21 from loan. What is the date of credit for TDS calculation and when should I pay TDS with or without interest ? Pl clarify
Hi I am buying a property for 42 lacs but its market price/ government value is 54 lacs. Am I liable to pay 0.75% TDS?
Hi,
Me and my husband are buying a property of worth 60 lakhs (50-50 Ownership). In this case each one of us would pay 30 lakhs to buyer. This amount is less than the TDS applicable amount( 50 lakh ). Are we liable to deduct TDS?
Thank you
Here Value of property is relevant factor for deciding TDS is applicable or not.
If value of property exceeds 50lakhs TDS is applicable irrespective of no of co-owerners.
Me and my wife buying property worth 60 lakh from our Joint account considering 50-50 owner of property. Are we liable to deduct TDS or not? As our individual share will be 30 Lakh and section 194 have limit of 50 lakh.
I have made a deal of buying property of Rs 1 crore including gst and paid first installment is Rs 10 lakh including gst. So while paying tds in column ‘total value’ and ‘amount paid to seller’ will i enter values with gst or without gst?
Hello,
I bought flat with 90 lac agreement value. I paid 20% of it by deducting TDS. now the balance 80% cost through loan.
Bank requests TDS certificate before disbursement. Is it possible to pay lumpsum TDS amount in one go before total amount paid to seller? my bank disbursement is pending. kindly advise
I HAVE PURCHASES PLOT FOR RS 1cr jointly with my wife from HUDA which is govt body. PAN of HUDA IS AAAAH087M. KINDLY GUIDE ME REGARDING Tds on following points:-
1. whether tds to be deposited while purchasing plot from Huda
2. what is tax applicable code 021 or 020
3. Whether we have to deduct tds by both me and my wife as per our share of payment??
If payment has been made to the seller at different dates , then how the tds including late fee if any will be calculated.
Property was sold by Bank on public auction due to NPA account. On whoes name TDS should be deducted i.e either on Original Property owner (borrower) or in the name of Bank as Bank is selling the property and receiving sale consideration. Please clarify
Very clear article. Thank you.
A query. What if the transaction has GST associated with it? I understand you have mentioned that TDS should be 1% of the transaction amount (excluding GST). But then while paying money to the builder (99% of transaction amount +GST), should GST be calculated still on the entire amount (on 100% transaction amount)?
I have one doubt to be clarified. I have paid TDS on Sale of Property of amount say 50k and the same has been declared in ITR return. But i can see the amount is not refunded though the amount is there in form 26as but not form16. What is the expectation here? Should I get the money or not?
If yes what should I do now?
TIA
Hi,
I am been reading everywhere that if there are more than 1 buyer each buyer have to fill Form-26QB individually.
In my case I am the owner and my Dad and wife are the co-owner of the property. All the transaction was done by my account so do i still need to fill 3 forms (3 buyers) or just one with my name?
And in case of 3 buyers? How much amount i need to pay?
E.g. 1 cr is flat cost so TDS amount will be 75k. each one have to pay 75/3?
I have purchased a property with co-owner as my dad and wife. But all the transaction were made by me.
Do i still need to fill 3 forms (3 buyers) or just one with my name?
If three how can i distribute the amount? E.g. if flat cost is 1 cr?
I have purchased a property with co-owner as my dad and wife. But all the transaction were made by me.
Do i still need to fill 3 forms (3 buyers) or just one with my name?
If three how can i distribute the amount? E.g. if flat cost is 1 cr?
Hi
We have bought a house and paid in installments. as per provisions TDS is to be deposited within 30 days from the end of the month in which deduction is made, If one the instalment is in December 20, I can pay TDS to Govt with in 31st Jan2021. Then what is the due date for Filing 26QB
We purchased a property under construction for Rs 70 lacs in 2010. We have paid Rs.55 lacs before 2013 when TDS over Rs. 55 lacs came in to effect. Post 2013, we only paid Rs 15 lacs, we are registering the property in 2020 December . As one tax expert 1% TDS is only payable if payment in excess of Rs: 50 lacs was paid after the law came in to effect in 2013. Is this correct?
We are paying to the owner in 3 installments + bank loan, so there will be 4 installments that will be paid to the owner. In this case, what should be Date of Payment/Credit*, date of which installment ?
There are two buyer and two sellers of the property and value of property is 60 lac. while filling up form 26qb for each buyer what shall be Total Value of Consideration (Property Value)*?
In fields “Date of Payment/Credit”, do we need to fill date of flat payment or date of TDS payment? And then in field “Date of Tax Deduction”, which date is to be filled as TDS payment is yet not done and no other tax is deducted? My flat payment is already done completely (only TDS is left) in Nov 2019 but I’m filling TDS now in Nov 2020. Please help for these two fields. And do I pay 1% or 0.75%? Also, how to do the payment of rest 0.25% to DDA then?
need to know tax benefits for the Disabled on sale of property if any applicable.
Can the disabled claim tax exemption on sale of property.. an urgent requirement.
Hai
if i have gained money from selling ancestral property, if i invest the same in purchasing a second hand home, do i need to pay tax
is TDS applicable on purchase of flat if all proceeds from sale of flat are used for buying another flat?
Thanks
Two Partners purchased plot in August’20 & paid advance to seller from their personal accounts. In Sep’20 have got LLP registered. Now they want to take back the advance paid to seller from LLP in Sep’20. What is the implication of TDS?
Hi today when I was paying tds online on property which I purchased. The tax rate was shown as 0.75%. There was no option for change to 1 %. Is there any change in rules ??
Regards…. Amar
From 2020 the rule has been changed (i.e, 0.75%)
Sir
I want to purchase a flat in pune which is jointly owner by muslim lady along with her late husband.
There are 4 legal heirs Wife, 2 NRI sons, one resident daughter. To save the hardship of 20% TDS, they are of opinion to exceute sale deed by all legal heirs but want to release the payment in name of his/her mother who is local resident. Can it possible to issue the 12 B in name of mother whereas in facts sale deed is going to execute by 4 persons. Is there any violation of law.
IF THE SELLER ARE JOINT HOLDER OF PROPERTY ( COUPLE SAY) WITH EQUAL SHARE) AND on sale IF SELLING PRICE is RECEIVED by two cheques i.e Rs 2750000 to husband and Rs 2750000 to the spouse. then in this case will 1% tds be deducted by the buyer before making final payment. There is no capital gain a per indexation.please clarify
what will be in case seller are ( joint owners) couple & byer also?? TDS to be deducted at whose name?
I have purchased property worth 90 lakhs and made payments in three installments in the month of August 2020. Can i deposit TDS on the entire 90 lakhs in one go before 30 September 2020?
Who is responsible to deduct and pay the TDS on sale /purchase of property worth more than 50 Lacs?
In case the party responsible to deduct and deposit the TDS fails to comply, can or will the other party be held liable? If yes what kind of penalty can be levied?
Thank you.
Hi,
My date of agreement for property purchase is 1st November 2019. This was registered at full value basis 20% advance payment.
I then made another 20% payment as per payment structure agreed with the builder. TDS was deposited on time for this 40% (20+20) payment.
The balance 60% of the agreement value was to be paid after receipt of OC. The OC has been received now. This 60% payment will be done by the bank as a home loan.
But the bank wants me (buyer) to pay the TDS first, only then it will disburse the loan amount to the builder.
1. My question is how do i pay TDS in advance?
2. What date do i fill in form 26QB for the question DATE OF PAYMENT/CREDIT/DATE OF PAYMENT TO THE TRANSFEROR/SELLER? I am confused, as this date will depend on when the bank disburses this balance amount, but wants me to pay TDS first.
Kindly guide.
Is TDS applicable for buying a property which is already in Home Loan? Planning to take home loan of 55 lanks to buy a property. If i want to pay TDS after Registration date within how many days i should pay TDS? If the Registration value is 69 lakhs what will be my TDS?
In case of endorsement of flat from 1st buyer to 2nd buyer the agreement to sell in amount 10000 while agreement to sell b/w 1st buyer and builder was at 15000. TDS 2nd buyer should deduct at which rate.
15000 is approx circle rate and on which registery will be done bw 2nd buyer and builder.
Kindly guide.
TDS deducted 1% on purchase of property and same is deposited but wrongly deposited u/s 194J instead of 194IA. kindly suggest me what should I do in wrongly u/s 194J
i have bought a plot exceeding to Rs. 50 lakhs. HUDA office made re-allotment order in my name . whether TDS is required to be deducted.
Buyer wrongly deducted TDS as 1% and deposited the same to Tax authority but Income tax authority shown as 0.75 %credited in 26AS of seller.
What happened to the amount of 0.25% which were already deposited to the authority
I have paid a small amount during the sale agreement without deducting the TDS and couple of months later, planning to pay the remaining in one payment by deducting TDS (of sale amount) during registration of the property. Is it ok to pay the TDS once to Govt after the sale deed done? Will I be charged late fee for the agreement amount that I paid without deducting TDS?
Dear sir, if agreement is made on 22 june 2020 and property is second hand. loan from bank is still under process , loan amt will get deposit to buyer account and then buyer will pay the same to seller. is 30 days calculation is from date of agreement or date of payment on which buyer will pay the amount to seller. if buyer pay amt to seller after three month. then what is date of tds deposite .pls suggest asap. thanks in advance
1. Is this TDS Rate changed from 1% to 0.75 % if payment date is on or after 14th May 2020?
2. I have taken a loan and my registry date is 1st July 2020 , can I pay the TDS On any date before 1st July ? If yes, what will be the date of payment to transferor/seller and what will be the date of TDS deduction date ?
Any help will be highly appreciated!!
Thanks!!
In case of property sold amount is less than circle rate. is TDS to be deposited based on Agrement amount or Circle rate.
TDS APPLICABILITY OF INDUSTRIAL PLOT & BUILDING MIDC PROPERTY PURCHASED IN AUCTION FROM DRT COURT PAYMENT MADE TO ARCIL .FULL AMOUNT RECEIVED BY ARCIL AMOUNT IS ABOVE 50 LAKHS. TDS NOT DEDUCTED FULL AMOUNT PAID IN BID.
The writeup doesnot mention about TDS applicable to NRI sellers.It is 20%+surcharge on total sale.TAN is required to remit this.No article I have read highlights this .Please include a paragraph on this most important aspect.