Paying Tax Deducted at Source (TDS) on the sale of immovable property (Form 26QB) is a straightforward process conducted online through the official Income Tax e-filing portal. This guide outlines the steps for buyers to deposit TDS when purchasing a property valued at ₹50 Lakhs or more.
Understanding Form 26QB
Form 26QB is a challan-cum-statement for the payment of TDS on the sale of immovable property (excluding agricultural land). As per Section 194-IA of the Income Tax Act, 1961, if you are a buyer of immovable property and the sale consideration is ₹50 Lakhs or more, you, as the buyer, are responsible for deducting TDS at 1% from the payment made to the seller.
Key Aspects of 26QB:
- Who pays? The buyer of the property.
- What is it? TDS on the sale of immovable property.
- Threshold? Property value of ₹50 Lakhs or more.
- TDS Rate? 1% of the total sale consideration.
Step-by-Step Guide to Paying TDS on Property Sale Online
Follow these steps to successfully deposit TDS using Form 26QB:
1. Access the Income Tax Portal
- Visit the official Income Tax e-filing website: incometax.gov.in.
- Log in to your account using your Permanent Account Number (PAN)/Aadhar and password. If you are a new user, you will need to register first.
2. Navigate to e-Pay Tax Section
- Once logged in, look for the 'e-File' section in the main menu.
- From the dropdown menu, select 'e-Pay Tax'. This section allows you to make various tax payments online.
3. Select Form 26QB (TDS on Sale of Property)
- On the 'e-Pay Tax' page, you will see several options for different types of tax payments.
- Under the 'New Payment' section, locate '26QB (TDS on Sale of Property)'.
- Click on the 'Proceed' button associated with this option to start the payment process.
4. Fill in Transaction Details
You will be redirected to a new page where you need to provide essential details related to the property transaction. Ensure all information is accurate to avoid discrepancies.
- Buyer Details: Your PAN, address, and contact information.
- Seller Details: The seller's PAN, address, and contact information. It is crucial to have the correct PAN of the seller, as TDS credit will be linked to it.
- Property Details:
- Type of property (land, building, apartment, etc.).
- Full value of the consideration (the total amount for which the property is being sold).
- Date of agreement/booking.
- Date of payment/credit (when TDS was deducted).
- Assessment Year for which the payment is being made.
- TDS Amount: The system will calculate 1% of the sale consideration. Verify this amount.
5. Choose Payment Method and Complete Payment
- After filling in all the required details, you will have the option to choose your preferred payment method:
- Net Banking: Select your bank from the list and proceed to its payment gateway.
- Debit Card: Select your bank and complete the transaction using your debit card details.
- Confirm all the entered information once more before proceeding with the final payment.
6. Download Challan 280 and Form 16B
- Upon successful payment, a Challan 280 will be generated. This is your proof of tax payment. Make sure to download and save a copy for your records.
- Subsequently, as the buyer, you are required to issue Form 16B to the seller. This is the TDS certificate for the property transaction. You can download Form 16B from the TRACES portal (tdscpc.gov.in) after about 5-7 days of making the payment. The seller will use this Form 16B to claim the TDS credit in their income tax return.
Quick Reference Table
| Aspect | Details |
|---|---|
| What is it? | TDS on the sale of immovable property (excluding agricultural land). |
| Form Used | 26QB (for online payment of TDS). |
| Who is Liable? | The buyer of the property is responsible for deducting and depositing TDS. |
| Threshold | Property value must be ₹50 Lakhs or more. |
| TDS Rate | 1% of the total sale consideration. |
| Payment Due Date | Within 30 days from the end of the month in which the TDS was deducted (i.e., the date of payment/credit). |
| Proof of Payment | Challan 280 (immediately after payment). |
| TDS Certificate | Form 16B (issued by buyer to seller, downloadable from TRACES portal after payment is processed). |
By following these steps, you can ensure timely and compliant payment of TDS on your property transaction, providing the seller with the necessary documentation to claim their tax credit.
