TDS On Purchase Of Immovable Property

Any person purchasing immovable property (other than rural agricultural land) of Rs. 50 Lac or more is Required to deduct tax @ 1% from the payment made to seller.

Responsibility of the Purchaser of the Immovable Property

Step 1   Deduct TDS

Ø Deduct tax @1% from the payment made to the seller.

Ø Collect the Permanent Account Number (PAN) of the seller and verify the same with the original PAN card.

Step 2   Online Filing of Statement at www.tin-nsdl.com

Ø It is mandatory to furnish the PAN of seller as well as the purchaser while Providing the information regarding the sale transaction in the online form (Form No. 26QB).

Ø Please ensure that there is no error in quoting the PAN or other details in filing online Form 26QB.

Step 3   Depositing the tax deducted

Ø Deposit the tax deducted through e-payment only, either at the time of filing of Form 26QB or subsequent to it. E-payment can made using electronic payment facility at any authorized bank, including self net banking Facility.

Ø In case, the payment of tax deducted is made subsequent to the filing of Form 26QB, pay tax using electronic payment facility at any authorized bank within 7 days after online filing of statement at www.tin-nsdl.com.

Ø If there is a delay beyond 7 days in payment of tax, the statement filed online would be treated as ‘invalid’. In that case, Form 26QB, will need to be filed again.

Step 4   Issue of TDS Certificate

Ø Download TDS certificate from traces (www.tdscpc.gov.in)

Responsibility of the Seller of the Immovable Property

Ø Provide your PAN to the purchaser for furnishing information regarding TDS to the Income Tax Department.

Ø Verify Deposit of taxes deducted by the purchaser in your Form 26AS Annual Tax Statement.

TAN Not Required

TAN of The deductor is not required for the payment and reporting of the Tax deducted under this section and PAN allotted to the deductor shall be used for payment and reporting of TDS made under this section.