Every buyer of property is responsible for deduction & deposit TDS on Purchase of Property. When buying or selling immovable property in India, understanding Tax Deducted at Source (TDS) is crucial. TDS is a specific amount deducted from payments as a tax and must be deposited with the government.
This article will helpful for every practical question in your mind for TDS on property purchase like,
How to deduct TDS on purchase of immovable property? or TDS on purchase of property online payment? Or How to deposit tds on purchase of property online? What details required & where need to deposit TDS etc.
When the Buyer Must Deduct and Deposit TDS
As per Indian tax laws, when purchasing immovable property (excluding agricultural land) valued at Rs 50 lakhs or more, the buyer must deduct TDS at 1% of the transaction value. The deducted TDS must then be deposited with the government.
- TDS is deducted at 1% if the property value is ₹50 lakhs or above.
- The buyer is responsible for deducting and depositing TDS.
- TDS should be deducted from the total consideration paid to the seller.
How to calculate TDS amount & net payout to the seller:
For example : if property value which you agreed to buy is Rs 60,00,000 then you need to deduct 1% of Rs. 60,00,000 i.e. Rs. 60,000/- as TDS and deposit online through Income tax portal https://eportal.incometax.gov.in/iec/foservices/#/login after login with your personal credentials or get help of good professional CA, CS or lawyers etc. After deducting TDS amount balance amount need to pay to the seller i.e. Rs. 59, 40,000 (will be pay to the seller).
How to deposit TDS on purchased property online: Step-by-Step Guide
Depositing TDS involves a few steps, and it can be done online. Here’s a simple guide:
- Visit the Income tax website (ITR filing portal) or TIN NSDL Website: Go to the ITR Portal/TIN NSDL website.
- Select the Right Form: Choose Form 26QB for payment of TDS on property.
- Fill in the Details: Provide all necessary details, including:
Property Details: Address of the property.
- Buyer’s Details: Name, PAN, and address.
- Seller’s Details: Name, PAN, and address.
- Transaction Details: Total amount paid, TDS amount, date of payment.
- Submit the Form: After filling in the details, submit the form.
- Make the Payment: You will be redirected to the payment gateway. You can pay through net banking or by visiting your bank branch.
Section of TDS on Property
The TDS on the sale of property is governed by Section 194IA of the Income Tax Act, 1961. This section mandates that TDS should be deducted when the sale consideration is ₹50 lakhs or more.
Mode of Payment for TDS on purchased property
TDS on property can be paid online through net banking or offline by visiting any authorized bank branch. Most major banks support TDS payments through their net banking portals.
Property Address and Other Details Required for TDS Challan:
TDS on purchase of property online payment requirements, when filling out the TDS challan online, you need the following details:
- Buyer’s PAN and contact details including email id.
- Seller’s PAN and contact details including email id.
- Property address (which buy) & sellers address.
- Date of agreement and total sales consideration.
- Date of last instalment & instalment amount.
- Amount paid and TDS amount.
How to Download TDS Challan?
After making the payment, you can download the TDS challan as follows:
Acknowledgement Page: After payment of TDS, an acknowledgment page with a unique acknowledgment number will be generated.
Download TDS Challan: Save and print the acknowledgment for your records. You can also download the challan from the TIN NSDL website by entering the acknowledgment number and PAN details.
Contact Kcorptax Right Away!
If dealing with tax matters feels overwhelming, consider getting help from tax professionals. Kcorptax offers expert assistance with handling TDS (Tax Deducted at Source) issues and online ITR filing. They ensure you comply with all tax regulations and make the process much easier for you. Their experienced team can guide you through every step, making sure everything is done correctly and on time.
With Kcorptax, you can avoid the stress of tax compliance and focus on other important aspects of your business or personal finances. Let the experts at Kcorptax simplify your tax matters today, call us & get free enquiry for processing steps of TDS on Purchase of Property.
FAQs
1. What happens if the buyer fails to deduct TDS?
The buyer may be liable to pay interest and penalties for failing to deduct or deposit TDS on time.
2. Is TDS applicable on all property transactions?
No, TDS is only applicable if the property value is ₹50 lakhs or more.
3. Can TDS be deposited offline?
Yes, TDS can be deposited offline by visiting an authorized bank branch.
4. Do I need the seller’s PAN for TDS deduction & deposit?
Yes, the seller’s PAN is mandatory for deducting TDS.
5. How soon should TDS be deposited?TDS must be deposited within 30 days from the end of the month in which the deduction is made.