TDS on Sale of Property

The government has amended certain TDS-related clauses pertaining to immovable property. In the near future, additional fees will be added to the property cost when calculating the tax amount at the time of property payment. Included here are payments made for club membership, parking, electricity, water facility maintenance, and any other advances.

For instance, if a property is purchased for Rs 60 lakh, the buyer will be required to deduct TDS at 1% on Rs 60 lakh and not on the excess over Rs 50 lakh.

Moreover, if payments are made in installments, such as in the case of the purchase of a property that is still under construction, the deductions must be made at the time of each payment. A non-resident Indian (NRI) seller may be subject to unique regulations.

Points to remember when deducting TDS

• If the sale consideration is less than Rs 50 lakh, no TDS is due.
• For deducting TDS, buyers are not required to obtain a Tax Deduction Account Number (TAN).
• In the absence of the seller's Permanent Account Number (PAN), 20 percent TDS will be withheld.

How to pay TDS online on property?

• Visit the TIN NSDL website (tin-nsdl.com )
• Click "Online form for furnishing TDS on property (Form 26QB)" beneath "TDS on sale of property."
• Select the challan titled "TDS on Sale of Property."
• Fill out the 26QB form as needed. Provide the following information: PAN of the vendor and purchaser, Communication information between the seller and buyer, Property information, Amount paid/credited & tax deposit details
• Complete the form to continue. To print Form 26QB, click "Print Form 26QB." Then, click "Submit to the bank" to make the necessary payment online via internet banking. Save the generated acknowledgement number.
• A challan containing the CIN, payment information, and bank name through which payment is made will be generated. This is evidence that payment has been made.