How To File TDS On Property In 2024

How To File TDS On Property In 2024
3 min read

How To File TDS On Property In 2024?

In the world of real estate, navigating through jargon like Tax Deducted at Source (TDS) is crucial. TDS on property sales is governed by Section 194-IA of the Income Tax Act of 1961, focusing on immovable properties like buildings and plots.

TDS Trigger: Crossing the Rs 50 Lakh Mark

When a property buyer transacts an amount exceeding Rs 50 lakh, they are required to deduct 1% of the total transaction value as TDS before making the payment to the seller. TDS, essentially an indirect tax, is deducted at the source during payment.

Filing TDS on Property: A Step-by-Step Guide

Initiate Payment: Start by entering your phone number and validating your PAN. Choose "New Payment" and proceed with 26 QB (TDS on Property Sale).

Form Details: Fill in seller's and buyer's PAN, email addresses, property details, payment/credit amount, and tax information.

Payment Method: Select your preferred payment method - online banking, debit card, bank, or NEFT/RTGS payment gateway.

Acknowledgment: Post-payment, receive an acknowledgment challan with CIN, payment details, and bank account information.

TRACES Portal: After five days, access the TRACES portal at www.tdscpc.gov.in to download the file.

Downloading Form 16B: A Quick Guide

Log In: Use your PAN to log in to the TRACES site.

Navigate Downloads: In the Downloads section, choose Form 16B for the buyer.

Form Details: Provide property facts and seller's PAN, acknowledgment number, and assessment year. Click "Proceed."

Request Submission: Confirm the details and submit the request. Receive a success notification.

Download: Use the request number to locate and download the files by clicking the HTTP download button.

Read More:-What are the new rule of filling TDS?

Changes in TDS Rules for Immovable Properties

The government has introduced modifications, expanding TDS to include fees for maintenance, club membership, utilities, parking, etc., impacting the total property cost for TDS calculation.

TDS on Property Purchase from NRI Sellers

Purchasing from an NRI entails deducting 20% TDS plus 4% cess. If the NRI seller sells within two years of purchase, the deduction rises to 30% TDS plus 4% cess.

Points to Remember

  • No TDS if the property value is below Rs 50 lakh.
  • No TAN required for buyers to deduct TDS.
  • Without a PAN, TDS is withheld at a 20% rate.

In conclusion, TDS ensures fair taxation, broadening the tax base, and providing a steady revenue stream for the government. The collaboration between payers and tax authorities benefits both parties.

Read More:-How to file TDS file on Property?

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