According to rules in respect of tax deducted at source, buyer of the property would have to deduct the TDS and deposit the same in Government treasury. PAN of the seller is mandatory. The same may be acquired from the Seller before effecting the transaction. The Buyer of the property deductor of tax has to furnish information regarding the transaction online on the TIN website i. After successfully providing details of transaction deductor can:.
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This section of the Act specifically deals with transactions involving the sale of immovable property and the applicable TDS along with Form 26QB needs to be submitted within 30 days counted from the end of the month in which TDS was deducted. For instance, if the transaction occurred on 14 th March then Form 26QB must be mandatorily submitted by 30 th April.
The Income Tax Act, has laid out a few key rules regarding sale and purchase of immovable property. In such transactions covered under Section IA, the buyer, also known as the deductor, is required to deduct TDS if the transaction value is more than Rs. Subsequently, the deductor will required to issue Form 16B to the deductee seller. They are:. The applicable penalties are as follows:. If you are wondering about how to pay through Challan 26QB and download the form then here the steps you need to follow:.
Know More about Form 26AS. A few of the frequently asked questions about Form 26QB have been answered here:. I do not have a TAN Number. How can I deduct TDS? However, the buyer as well as the seller needs to furnish their PAN for the transaction including the deduction of TDS. You need to take action and pay the penalty as soon as possible to set the account straight. Make sure to remit the TDS to the government and file TDS return within the stipulated time as well to avoid other penalties.
Form 26QB. TDS on immovable property sale is not applicable for transactions valued at less than Rs. For transactions beyond this limit, TDS is deducted on the entire transaction amount. For instance, if the property cost Rs. If the payment is made in installments then TDS is deducted proportionately on each individual installment. In case there are multiple buyers and sellers involved in the transaction, the deductor will be required to submit multiple Form 26QB.
After deducting and depositing TDS, the buyer must furnish a TDS certificate to the seller within 15 days of the transaction in lieu of the tax deducted and deposited to the government. The buyer must then obtain Form 16B and furnish it to the seller. On the subsequent page, under the TDS on sale of property menu, click on Form 26QB Online form for furnishing TDS on property : Fill in the relevant details To fill Form 26QB, select one of the options given: Corporation Tax Companies Income tax other than companies Financial Year and Assessment Year Address of TDS deductor and Property Details After this, select the Mode of payment e-tax payment immediately through net banking facility e-tax payment on a subsequent date payment at later date through a bank branch If you choose the net banking option then you need to login to your account using your Internet banking credentials and make the payment.
Once payment is completed, you can now download the Form 26QB. You need to print it out and take this form to your bank branch to make the payment. I forgot to deduct TDS when I purchased a property. What should I do now? Generate Form 26QB with a unique acknowledgement number and visit your bank with this form to make the payment.
The form 26QB with acknowledgement number is valid for 10 days. Rate us! Did you find this article helpful? Rate it.
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As we all know that the purchaser of property with value of Rs. 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 site of Tin. Select in case of non corporate payer and in case of corporate payer. 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 with a tick on , which is payment of TDS on sale of property. This is the first phase of the process.
What is Form 26QB?