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Payment of TDS on sale of property & File Form 26QB

Payment of TDS on sale of property & File Form 26QB
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TDS on sale of immovable property as per section 194 IA is implemented As per Finance Bill of 2013.The section is exempted for transactions below 5000000.00 ( Fifty lakhs) with effect from June 1, 2013, Tax @ 1% should be deducted by the purchaser of the property at the time of making payment of sale consideration. In this post we will discuss about payment of tds on sale of property and submitting Form 26QB.

As you know TDS deducted should be deposited on or before 7th of next month of deduction.The payment can be made through online banking or offline banking.Here we are discussing how to make tds through online banking.You must have an online banking account for making tds payment online.

The late payment of TDS attract fine and penalty. To make payment of  tds on sale of property,You have to fill and submit Form 26QB. It is important that the buyer is required to issue Form 16 B to the seller and obtain a Form 26QB.

How to make payment of TDS on sale of Property

Step1

Visit the below link

https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp

Click on Form 26QB under TDS on property.

form-26-qb

Step-2

  • Select tax applicable for which payment is to be done.
  • Select Financial year from the drop down for which payment is to be done.
  • Mention PAN of the buyer.
  • Mention PAN of the Seller.
  • Re-enter PAN of the buyer.
  • Re-enter PAN of the seller.

form-26-qb_1

Step-3

  • Enter complete address of transferee/buyer.
  • Provide complete address of transferor/Seller.
  • Select Yes/No if there are more than one buyers.
  • Select if there are more than one seller.

form-26-qb_2

Step-4

  • Provide Complete address of property
  • Enter the date of agreement/booking of property.
  • Mention the Total Value of consideration.
  • Mention wheather the total consideration is paid in lump-sum or in installment.

for-26-qb_3

Step-5

  • Enter the total amount paid to the seller.
  • Enter the TDS rate at which tds is deducted, 1%.
  • Enter the tds amount paid ( tds deducted at the time of purchase of property)

form-26-qb_4

Step-6

  • Under tax deposit details, amount entered here should match the amount selected from the drop down list above.
  • TDS amount should match the percentage entered.Other wise you cannot move further.

form-26-qb_5

Step-7

  • Select the mode of payment that is online or offline.
  • Select the bank name through which payment is to be made.
  • Enter date of payment to the seller.
  • Select the date of tax deduction.
  • Enter the characters as shown in the verification image.
  • Click on Proceed button to proceed further.

form-26-qb_6

Step-8

  • On proceed, confirmation page is displayed to verify the details entered.

form-26-qb_7

Step-9

  • If all the above details including the name displayed ( as per ITD) is corect then, click on “confirm” button.
  • You can click edit in case any mistakes found in data entry to make changes.

form-26-qb-confirmation

Step-10

On confirmation, nine digit alpha numeric acknowledgement number would be generated as shown in the image below.

e-tax-acknowledgement-number

Step-11

  • Click on ‘Submit to bank‘ for making TDS payment on sale of property.
  • Click print Form 26 QB, to print.

e-tax-challan-submit-to-bank-form-26qb

Step-12

On clicking ‘Submit To the Bank’ button ,you will directed to bank site for making online payment.

  • Login bank site using deductor’s username and password.
  • Enter payment details at bank site.
  • The tds amount should be entered in the field ‘Basic Tax‘ in the online bank form.
  • On payment, a challan with CIN displayed as a proof of payment.

IMPORTANT POINTS TO BE CONSIDERED WHILE MAKING TDS ON PROPERTY PAYMENT.

  1. The PAN of the buyer and seller is mandatory in the form 26 QB.
  2. You have to approach Income Tax Department to rectify the PAN Number in case you have entered wrong PAN NO.There is no online mechanism to rectify mistake.
  3. Save acknowledgement number for downloading form 16B from TRACES website
  4. Form 16B can be available for download after 2 days from the deposit of tds at TRACES

How to View acknowledgement

Login to NSDL site https://www.tin-nsdl.com/

Click on TDS on sale of property.

Click on View acknowledgement number.

tds-on-sale-of-property

In the Form enter buyers & sellers PAN,Total payment,Assessment year. and click on submit.

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