Wondering how to file E-TDS on property purchase online....here's the ANSWER | By Nikhil Pattani

It was in June 2013, when the Finance Act was amended and a new clause was included which stated that a buyer needs to pay tax on purchase of property costing more than Rs 50 lakhs. 

According to the amendment, the purchaser of an immovable property (any land or apartment or flat or building other than agricultural land)  is required to pay a withholding tax. The rate at which the tax is to be deducted is 1 per cent of the amount paid. The new provision has been introduced by adding Section 194IA. The major objective behind the introduction of the new section is to track real estate transactions that are not being registered.

Procedure:

TDS E-Payment facility is now available online. To avail this, the buyer is required to have a net-banking account. Please follow the following steps to pay tax online:-

1) Fill up Form 26QB, available on TIN website

As the responsibility of deducting TDS on immovable property lies with the buyer, he/she will have to deposit the payment by filling up Form 26QB or “TDS on sale of property” form available at NSDL-TIN website.

The form has to be filled with PAN and complete address of the buyer and the seller; address of the subject immovable property; date of sale agreement and the value of the property that is for consideration.

2)  Pay the TDS amount through net banking

The TDS amount is to be electronically remitted into State Bank of India or any other authorised bank. The list of authorised banks can be referred to on the official website of NSDL-TIN . The e-payment can be made immediately or on a subsequent date.

On receipt of payment confirmation, a nine digit alpha numeric acknowledgment number would be generated, confirming the remittance of TDS & receipt thereof.

3) Obtain a Challan for the payment made

On successful payment, a “challan” will be generated containing CIN, payment details and bank.

4) Download Form 16B

Once a buyer makes a payment, he/she can download Form 16B from website of Centralized Processing Cell of TDS (CPC-TDS).

The buyer will be responsible to give the certificate of TDS in Form 16B to the seller within 15 days from the due date of submission of the “challan”. The seller will be thus enabled to claim credit for such TDS against tax liability.

To fill your e-TDS now, click here