Taxation
TDS payment on property and how to obtain form 16B and 26QB

From June 2013, purchaser of property with value of Rs50 lakh and above should deduct 1% TDS at the time of making payment. Here is the guide about making payments of TDS and obtaining form 16B for the buyer and form 26QB for the seller

I would like to run the readers through the TDS payment process and the steps to be taken to obtain Form 16B (for the deductor or buyer) and Form 26QB for the (seller or deductee).

Firstly one has to go to the following link:
 

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

  • Once this link is opened click on Form 26QB (Payment of TDS on sale of property).
  • Select (0021) in case of non corporate payer and 0020 in case of corporate payer.
  • On filling in the various details called for in that form, click on ‘Proceed’ at the bottom of the page, this will then take you to the next page, which will give you the option to select your bank.
  • Once you select the bank, then login using the normal online process for your bank.
  • Once the payment is made the bank will let you print challan 280 with a tick on (800), which is payment of TDS on sale of property.
  • Take a printout of the challan and keep the same for your records and for the builder/seller if required.
     

This is the first phase of the process. Once this is completed one has to wait for seven days for the details to be reflected on TRACES web site - https://www.tdscpc.gov.in/. As a first time user, you will have to register on this website. Once you register whether as seller or buyer, you will be able to obtain the Form 16B or 26QB which has been approved and is reflected against your PAN in your Form 26AS.
 

Check Form 26 AS after seven days and you will notice that the payment you had effected against TDS on sale of property is reflected in Part F of the Form 26 AS under ‘Details of Tax Deducted at Source on Sale of Immoveable Property u/s 194(IA) [For Buyer of Property]. This will give you details such as the TDS certificate number (generated by TRACES), name of deductee, PAN of deductee, acknowledgement number, total transaction amount, transaction date, TDS deposited, date of deposit, status of booking and date of booking.
 

Once the payment is reflected in 26AS as above, you will have to go to the TRACES again. Login to the website, and click on ‘Downloads’ tab. In the dropdown menu click on ‘requested downloads’. If no application has been made you will be asked to make a request for download, here fill in the acknowledgment number (nine digit number) which is reflected on Form 26AS Part F as mentioned above. Once this is done, you will be able to view the status of your application, which generates an application request number.
 

Within a couple of hours, the application gets processed and you will be able to view your Form 16B by putting in the request number which you have obtained. You can take a printout of the same for your records as well as for handing over to the seller of the property. A similar process has to be followed by the seller to obtain form 26QB.

The entire process is system driven and works very smoothly.
 

For more details, you may also want to visit the Tax Information Network site.
 

(Girish Borkar  is a Mumbai-based Chartered Accountant and can be reached at girish@gmborkarco.com)

User

COMMENTS

Harshal Desai

4 days ago

I submitted Tds, does Tds challan has property address

Verma

10 months ago

I got the acknowledge number but the online payment failed and I do not have challan number. Can I use the same acknowledge number and make payment or I have to fill the form again and get a new acknowledge number.

Anil Misra

1 year ago

I filled up the wrong tds amount in the 26QB form.As I opted for offline payment,I still haven't made the payment.So could I fill in a fresh form as the acknowledgement number is valid only after the payment is made? Please advise.

Veena Murthy

1 year ago

Sir/Madam,

Is there a way to correct last payment date in form 16b as it was mentioned wrongly while filling in the form 26qb.

Please suggest.

ratan mahadik

2 years ago

I failed to take print out at the time of filling tds on my personal laptop. so please guide me to how to take print out of 26Qb and 16B.

Mahesh Devadiga

2 years ago

Sir,
How to rectify payment made in form 26QB on behalf of one transferor, whereas it should have been made proportionately to two transferors.
Please suggest.

Thanks & Regards
Mahesh Devadiga

Logeswari

2 years ago

Thankyou Sir....It will be more helpful for me...Thank You ..Thank you so much sir....

MK

2 years ago

the password for opening Form16B is your dob in ddmmyyyy format

Anmol Ubale

2 years ago

Please let me know , is there any Final date or last date to fill TDS online if the property is purchased in 2013-14 year.

Maninder Prashar

2 years ago

Respected Sir/Ma'm,

I had purchased property amount exceeding 50L in Sep 2013 last year. I heard about 1% TDS on property for transaction amount exceeding 50L. Can you please let me know what is the last date for paying tax on the property purchased last year?

Thanks for your time.

REPLY

Anmol Ubale

In Reply to Maninder Prashar 2 years ago

Hi Maninder,
Have u submitted TDS ? .. IF yes please let me know

Rajan

2 years ago

I have purchase a flat and made the part payment prior to 1 june 2013. Do I have to deposit the TDS on the payment done after 1 June 2013 or on entire payment.
While filling the Form 26QB, I have to mention total amount paid. Is here I have to mentioned the payment done after 1 june 2013 or on entire payment till date.

Gaurav Sharma

2 years ago

HI, i have bough a property on Noida with agreement value of 59 Lacs but the seller bough it for 54 Lacs. TDS is due in any case, my question is that the seller has only paid 50% to the builder and the rest is due to pay to the builder which in my case i will be paying to the builder in near future.

Please suggest on which figure i should be paying the TDS on property value of seller purchase 54 Lacs? On agreement value of 59 lacs that is there between seller and i? or the total payment that seller has paid to the builder which is 30 Lac, as rest 28 is still pending to be paid to the builder as the property is on CLP plan.
PLease suggest

REPLY

Anjana Krishnan

In Reply to Gaurav Sharma 2 years ago

Hi Gaurav,

As per my knowledge the 1% TDS would be on the amount you are gonna register for in the sale deed and the value cannot be less than the government value.

Hope this info helps

Gaurav Sharma

In Reply to Anjana Krishnan 2 years ago

Hey Anjana thanks for your reply.

abhikgiri

2 years ago

Hi, I am paying the builder 75 lakhs @ Rs 3900/sft (and this is the value that is registered in the sale agreement). However the guidance value of Karnataka government is 48 lakhs @ Rs 2850/sft. We are registering the property @ 48 lakhs (lower than the value we are actually paying to the builder) to reduce the cost of stamp duty+registration.
Now the builder is saying that 1% TDS need not be paid as sale deed value is less than 50 lakhs. But the bank person is saying that 1% TDS needs to be paid as sale agreement value is greater than 50 lakhs. What should I do?

REPLY

Anjana Krishnan

In Reply to abhikgiri 2 years ago

Hi Abhikgiri...

I am sharing this info from my recent experience. I had purchased the flat for 83 lakhs but the guidance value was 91 lakhs . So irrespective of the amount you purchase, you need to register only the guidance value and in your case you are lucky that the guidance value is lesser so there is no 1% TDS as its below 50 lakhs. The registered sale deed would be for 48 lakhs . So there is no requirement of 1% TDS.

SUBIR PURKAYASTHA

2 years ago

we have purchased one property for a consideration of Rs 85 lacs. which was registered before 01/06/2013. i have paid Rs 60 lacs before till registration date. now we paid the balance amount does. on what amount we have to deduct the TDS. IT ONLY ON BALANCE AMOUNT THAT WE ARE PAYING NOW OR ON FULL AMOUNT OF 85 LACS 1%

SM

2 years ago

I purchased a property worth 80 lakhs from 4 sellers. I filed 26QB online mentioning first sellers name and mentioning the cost of the property as 80 lakhs and by mistake paid 80000 tds through netbanking in favour of the first seller alone. how to correct this mistake and split the tds amount paid in favour of other sellers also.

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