How to handle TDS on sale of property

Since June 2013, it has been mandatory for buyers of immovable property to deduct TDS from the amount to be paid to the seller. It is the responsibility of the buyer to deduct TDS if the transaction value exceeds Rs. 50 lakh. The buyer is required to deduct TDS @ 1% on the total consideration and deposit the same in the account of the income tax authorities in the prescribed format.

Form
Form 26QB must be filled by the buyer either online or offline to deposit the TDS. One can click the following link to access the form online. https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp

Due date for filing
The challan (Form 26QB) must be filed within 7 days from the month in which the TDS was deducted by the buyer.

Details
Information with respect to the buyer and seller (name, address, PAN, status), details of the property, consideration and TDS payable must be entered in the form.

Payment
One can choose to pay either through Netbanking or at the branch of the bank. If the taxpayer chooses e-tax payment on subsequent date at the bank branch, an acknowledgement number is generated. This number must be retained by the taxpayer to be presented to the bank while making the payment.

Process
Once the form is filed and payment made to the income tax authorities, approved form 26QB or form 16B can be downloaded by logging into TRACES as a tax payer. Form 16B must be provided by the buyer to the seller as a proof of deposit of TDS.

Points to note
1. Dealings in agricultural land are excluded from the requirements of these provisions.
2. If the consideration is being paid in installments, TDS must also be deducted on each installment.
3. If PAN is not provided by the seller, TDS @ 20% is deductible.

Source: The Economic Times

Read More

Central Government Employees must file Immovable Property Return by 31.01.2015.

Day after tomorrow, Ministry of Personnel, Public Grievances and Pensions Department of Personnel & Training has issued an office memorandum stating that Central Government Employees will be required to file annual property return as per existing provisions of CCS (Conduct) Rules, 1964 also. According to this Office Memorandum dated 16th January, 2015 all CSS Officers of Central Government are directed to file immovable property return by 31.1.2015.  The Office Memorandum is as under :

IMMEDIATE

No.25/1/2015-CS.II(C)

Government of India

Ministry of Personnel, Public Grievances and Pensions

Department of Personnel & Training

3rd Floor, Lok Nayak Bhavan,

Khan Market, New Delhi – 110003

Dated : 16th January, 2015.

OFFICE MEMORANDUM

Subject : Immovable Property Return for the year 2014 (as on 31.12.2014) – submission through cscms.nic.in – regarding.

The undersigned is directed to state that, as all are aware, CS.II Division, Department of Personnel & Training is the custodian of Annual Immovable Property Return (IPR) in respect of CSS officers of Under Secretary and above levels.

2. As Ministries / Departments are aware that all Government servants are now required to file information and returns regarding movable and immovable property under the Lokpal and Lokayuktas Act, 2013. In this regard, queries have been received as to whether there is any need for public servants to file property returns under the CCS (Conduct) Rules, 1964, in addition to information and returns under the Lokpal and Lokayuktas Act, 2013. The matter has been examined in this Department and it has since been clarified vide O.M.No. 407/12/2014 –AVD –IV (B) dated 13.01.2015 (Para 7 (b) of the OM refers) that Govt. servants will be required to file annual property return as per existing provisions of CCS (Conduct) Rules, 1964 also. Accordingly, all CSS Officers are directed to file immovable property return by 31.1.2015.

3. As already informed, IPR should be submitted by all CSS Officers through the Web Based Cadre Management System which is hosted at cscms.nic.in Print out of the IPR submitted online in respect of US and above level officers of CSS should also be submitted to CS.I Division as it being the custodian of IPR of these officers. The procedure for filing IPR is reiterated as under :

(i) Login to the system at cscms.nic.in by using the userid and password. In case of any difficulty in login please contact the nodal officer of the Ministry / Department for assistance. The generic Userid is eight digit date of birth followed by first four letters of name. Userid is also the employee code assigned to individual officers in the web based system. If the password is blocked, nodal officers can reset the password of individual employees by using the ‘reset password’ facility in the Tools Menu on the top of the screen. They can also provide ‘Employee Code’ from the system to individual officers to enable them to login to the system.

(ii) Verify whether personal details are reflected in the system correctly. To verify the details click on the ‘Employee Details’ button. If the details are not correct, first have them rectified through Admin. Division of concerned Department before processing further.

(iii) Click ‘IPR’ button on the top and then click on ‘Immovable Property Returns’ icon;

(iv) Click ‘Add button’ and select IPR Year ‘2014’ ;

(v) In case the officer does not own any immovable property in terms of CCS (Conduct) Rules, click ‘Submit NIL Report’ button ;

(vi) In case the officer owns any immovable property click ‘Add New Property Details’. If the officer owns more than one property the procedure has to be repeated till all the property details are added ;

(vii) After adding property details as mentioned above, click ‘Close’ button ;

(viii) Then click ‘Final Submission of IPR’ to submit the report ;

(ix) Select ‘2014’ under ‘IPR Year’ and click ‘View’. The report as submitted by the officer will be viewed. Then click ‘Print Report’ at the bottom of the screen to take a print out of the report. Sign the hardcopy of the report and submit to Admin Division / Vigilance Division of the Department who will in turn forward the same to CS.I Division for records ; and,

(x) In case IPR is already submitted online last year, first click ‘Add button’ and then click ‘Copy Property Details from Last Year’s IPR for Current Year’ button. Thereafter click ‘modify’ button and submit it, if there is no change in the IPR details furnished last year. In case IPR is submitted online for the first time, then do not click the button ‘Copy Property Details from Last Year’s IPR for Current Year’ instead click ‘Add New Property Details’.

4. Ministries / Departments are requested that the contents of this O.M. may be widely circulated to the notice of all CSS officers working under their control. They should also ensure that the IPR for the year 2014 (as on 31.12.2014) is submitted by all officers within the stipulated period of 31.01.2015 without fail. Only the print out taken from the IPR module of the web based cadre management system in respect of Under Secretary and above level officers CSS should be forwarded to CS.I Division for records.

5. In case of any difficulty, please contact CMC officials who have developed Web Based Cadre Management System at Telephone No.24629890.

sd/-

(Kameshwar Mishra)

Under Secretary to the Government of India

Source : www.persmin.gov.in

Read More

TDS Applicability on Custom House Agent & Principal Payment.

TDS applicable under Head of Custom House Agent Bill on Status of Agent, which are as under:

U/s. 194C - Shipping Line Charges, Stamp Duty, Insurance etc.,
U/s. 194J - Survey and
U/s. 194C - CFS Charges, Cargo Transportation, Uploading Charges etc.

Condition 1 : If CHA Service Charges & Reimbursement Charges Bill Are Separate.

If Bill is Separate then TDS is not applicable to CHA but if we lift the veil because of "CHA is agent only" then expense addressed to Principal Company, then This Principal Co. is liable to deduct TDS on these expenses and Co. should book expense on respective head. However Mode of deduction is not prescribed because all payment are routing through agent,  but Co. should advise to agent to pay them ( respective exp ) net amount which is after deduction amount  and claim only net amount for using his cash flow on behalf of Co,  and Co. should transfer to CHA after tds deduction on that part the same net amount.

Condition 2 : If CHA Service Charges & Reimbursement Charges Bill Are Not Separate and it is Consolidated Bill

If Bill is not Separate then TDS is applicable on whole amount including this reimbursement amount irrespective of this, that he is agent. However expense head Co. should book expense head, as per their nature.  Applicability of section will be 194C however department is asking some time it u/s 194J. Company can go ahead with 194C also based on judgement of time

TDS applicable under Head of Custom House Agent Bill on Status of Principal, which are as under:

U/s. 194C - Handling Charges, Service Charges etc.

Condition 1 : If CHA Service Charges & Reimbursement Charges Bill Are Separate.

TDS is applicable on this part in all case. As a Industry Practice they are deducting u/s 194C, but department is asking in many survey u/s 194J. Principal Co. can go ahead with 194C also based on judgement of time

Read More

All about Long Term Capital Gain on Sale of Any Residential House Property.

Tax on Long Term Capital Gain (LTCG) on sale of any residential house property can be saved (U/s 54 of the Income Tax Act-1961) if the LTCG is invested within a prescribed time for purchase/ construction of a house property. The exemption u/s 54 would be available even if the taxpayer already owns another residential house property (i.e., exemption would be admissible even if second house property is purchased). Another option to save LTCG tax could be by investing the amount of LTCG within a period of 6 months from the date of transfer in the specified bonds issued by Rural Electrical Corporation (REC) or National Highway Authority of India (NHAI).

Time limit to Purchase the Property: Exemption u/s 54 is available

if the taxpayer invests the amount of LTCG for purchase/construction of a house property. The time period within which investment should be done is as under:

For Purchase: Within One year before or two years after the date of transfer; or

For construction: Within a period of three years from the date of transfer.

If you are planning to purchase a flat, you have to complete the transaction of purchase before 21.09.2015. Mere investment in plot is not sufficient for claiming an exemption u/s 54. However, if the house is constructed thereon then the cost of the plot would also be eligible for exemption u/s 54 along with construction cost.  

Scheme of Deposits: 

Even though u/s 54, taxpayer is allowed 2 years for purchase and 3 years for construction of the house property, the capital gain tax on such transfer is taxable in the previous year in which transfer took place. The return of income of that previous year has to be filed before the specified date i.e., due date. Hence, the tax payer has to take a decision for purchase/ construction of the house property before the date of furnishing of the return otherwise the capital gain would be taxable. To cope up with such situation, Income Tax Act has specified an alternative in the form of Deposit under the Capital Gain Deposit Accounts Scheme-1988 (CGDAS) for earmarking the amount for purchase/construction within specified time limit. The amount of LTCG which is not utilized by the taxpayer for purchase or constructions of the new house till due date has to be deposited under the CGDAS before the DUE DATE of furnishing the return of income. After deposits, the amount already utilized by the taxpayer for purchase/ constructions of the new house till due date, along with unutilized LTCG so deposited, shall be eligible for exemption u/s 54 in the year in which LTCG has arisen. Later on, whenever taxpayer purchase/ constructs the house property within a specified time slot, he can make payment from the CGDAS.

Exemption u/s 54 is available if the assessee invests the amount of LTCG for purchase of “a” residential house property. Interpretation of the word “a” is a matter of controversy. To be on a safer side, you are advised to invest the amount of LTCG in one house property only. You may further note that, for claiming an exemption u/s 54, you are required to invest the amount of LTCG only (not entire sale consideration of Rs. 29.99 Lacs). 

Registry Charges/Stamp Duty/Brokerage etc can be added to the cost of new flat for arriving at the amount of exemption u/s 54.

If you are not able to utilize entire LTCG for new house property, you can invest balance LTCG in the specified bonds issued by NHAI/REC. Exemption U/s 54 & U/s 54EC can be claimed simultaneously as well. If you are planning to invest in specified bonds, ensure to make the investment within a period of 6 months i.e., before 21.03.2014.

You can claim an exemption u/s 54 by booking a flat & making the payment in installment to the developer. After considering the amount paid to developer till due date of filing the return of income, ensure to deposit the balance of LTCG in CGDAS. Subsequent installment can be paid to the developer from CGDAS.

You can incorporate the name of your wife also in the sale deed for the name sake. Ensure to make the payment through your account only so that you would be able to prove that your wife don’t have any ownership stake in the property & her name is incorporated in the sale deed for the convenience only. 

If you are not sure of investing LTCG for purchase or construction, you can safely & timely think of claiming an exemption u/s 54EC by investing it in the specified bonds issued by NHAI/REC.

Read More

Important Brief Notes for TDS on Property u/s. 194 (IA).

Section 194(IA) has been inserted by Hon’ble Finance Minister Mr. P. Chidambaram while presenting the Budget 2013 and would come into force with effect from 1st June 2013.

The main motive behind such action is to curb the laundering of black money through sale of immovable property (other than rural agricultural land).

The section burdens the buyer of the property to deduct tax @ 1% of the amount paid or payable to the seller in case of value of transaction exceeding Rs.50,00,000/-.

But this provision is applicable only for the payment made to Residents for transactions with Non-Residents as covered under section 195 of The Income Tax Act, 1961.

What about the applicability of Sec 203A for obtaining the TAN by the buyer? 
In order to remove such hardship, sub-section 3 of section 194(IA) has been introduced which doesn’t mandate the procurement of TAN.

As per Notification No. 39 dated 31st May 2013, the TDS deducted has to be deposited within a period of 7 days from the end of the month in which the deduction is made.

Form 26QB has been prescribed for making such payments and the same has been uploaded in the website of NSDL.

The TDS certificate in Form 16B would be issued within 15 days from the due date of deposit of TDS. In case of non-availability of PAN, the TDS would be deducted at 20% of the amount paid or payable.

In case of transactions made in installments, the TDS has to be deducted at the time of paying each installment.

In calculating the value of Rs.50,00,000/- the aggregate of payments has to be taken into consideration and not the individual payment. So, there is no tax planning possible by way of creating multiple buyers and sellers.

Is there any exemption to the seller in case he is eligible for taking exemption from capital gains under section 54?
No, because the TDS is on the value of transaction and not on the amount of capital gain. So, investing in the assets specified under section 54 is not of any use. 

The value of 50,00,000/- pertains to a particular unit or property and the value refers to the value on the date of agreement provided the payment has been done through cheque/DD.

Read More

Tax Liability on Sale of Agricultural Land and Plot for Asstt. Year 2014-15.

TAX LIABILITY ON SALE OF AGRICULTURAL LAND

In normal course, any income from transfer of agricultural land, which is being used for agricultural purpose, shall be tax free if the agricultural land is not situated in any area within the distance (measured aerially) of not more than:

• 2 kms, from the local limits of any municipality or cantonment board and which has a population of more than 10,000 but not exceeding 1,00,000; or
• 6 kms, from the local limits of any municipality or cantonment board and which has a population of more than 1,00,000 but not exceeding 10,00,000; or
• 8 kms, from the local limits of any municipality or cantonment board and which has a population of more than 10,00,000.

If the agricultural land is situated within the radius of 2 kms/ 6 kms / 8 kms as mentioned above, then depending upon the period of holding, the profit arising on sale of agricultural land will be taxable as Long Term or Short Term Capital Gain.

In your specific case, if the agricultural land is not covered in the situation mentioned in (1) above then the profit arising on sale of agricultural land would be taxable as Long term Capital Gain as the agricultural land is having a holding period of more than 36 months. In absence of the exact reference of the date/financial year of acquisition in the query, Stamp Duty valuation of the land at the time of sale & also the non availability of the Cost Inflation Index (CII) for the FY 2013-14, the amount of Long Term Capital Gain could not be worked out. The CII for the FY 2013-14 has not yet been notified by the CBDT & it is expected that the same may be notified in this month itself.

TAX LIABLITY ON SALE OF PLOT

Suppose, the plot was purchased in 2011 and planning to sell it in the Fin. Year 2013-14. The profit on sale of plot would be a Long Term Capital Gain if it is sold after a holding period of more than 36 months. If the plot is sold within a period of 36 months, the profit would be treated as Short Term Capital Gain and for tax purpose, would be treated like your other regular income. It would be taxable as per the applicable tax slab to your income. Since you are ultimately planning to utilize sale proceeds for purchase of a residential house property, it is advisable to sell the plot after completing the holding period of 36 months so as to claim tax benefit conferred by section 54F.

In absence of the exact reference of the date/financial year of acquisition in the query, Stamp Duty valuation of the plot at the time of sale etc, the amount of Capital Gain could not be worked out.

Read More

No TAN Only PAN for TDS on Purchase of Immovable Property w.e.f. 01 Jun. 2013.

Any person purchasing immovable property (other than rural agricultural land) of Rs. 50 Lac or more is required to deduct Tax @ 1% from the payment made to seller.

Deduct TDS

• Deduct Tax @ 1% from the payment made to the seller.
• Collect the PAN of the seller and verify the same with the origional PAN Card.

Online filing of statement at www.tin-nsdl.com.

• It is mandatory to furnish the PAN of the seller as well as the purchaser while providing the information regarding the sale transaction in the online form (Form No. 26QB)
• Please ansure that there is no error in quoting the PAN or other details in filing online Frm 26QB.

Depositing the tax deducted

• Deposit the tax deducted through e-payment only, either at the time of filing of Form 26QB or subsequent to it.  e-Payment can be made using electronic payment facility at any aforesaid bank, including self not banking facility.
• In case, the payment of tax deducted is make subsequent to the file of Form 26QB, pay tax online electroic payment facility at any aforesaid bank within 7 days after online filing of statement at www.tin-nsdl.com
• It' there is a delay beyoind 7 days in payment of tax, statement filed online whould be treated as "Invialid".  In that case, Form 26QB, will need to tbe filing again.

Issue of TDS Certificate

• Download TDS Certificate from TRACES (www.traces.gov.in).
• Buyer of immovable property can download Form 16B after registering on TRACES as Tax Payer.

Responsibility of the Seller of the Immovable Property.

• Provide your PAN to the Purchaser for furing information regarding TDS to the Income Tax Department.
• Verify deposit of Taxes deducted by the Purchaser in your Form 26AS Annual Tax Statement.

TAN no required

• TAN of the deductor is not required for the payment and importing of the TAX deducted under this section and PAN alloted to the deductor shall be used for payment and importing the TDS made under this section.

Read More

Tax Liability if the Sale proceeds is utilized for purchase of a Residential House property

Subject to various other terms / stipulations, Tax on Long Term Capital Gain (LTCG) arising from the transfer of plot or urban agricultural land can be saved u/s 54F if the sale consideration is used for purchase of a residential house property within a prescribed period. The time limit prescribed for the purpose is:

For purchase:
One year before or two years from the date of Transfer.
 

For Constructions:
Three years from the date of Transfer.

It may be noted that although section 54F offers the time period of 2 years for purchase & 3 years for construction, the return of income is required to be filed before the specified date which is much shorter than the time period granted by Section 54F. If investment for purchase/ construction is not done by the tax payer before the due date of return filing, the amount need to be isolated by depositing it in the Capital Gain Deposit Accounts Scheme-1988 (CGDAS). Readers who wish to claim an exemption u/s 54F may note that if the amount is not invested for purchase/construction before the DUE DATE of furnishing the return of income, then it should be deposited under the CGDAS, before the DUE DATE of furnishing the return. After Deposit, the amount already utilized by the tax payer for purchase/ constructions of the new house along with the amount so deposited, shall be eligible for exemption under section 54F in the year in which LTCG has arisen.

[Consequence where the amount deposited in the capital gain deposit account scheme is not utilized for the purchase or the construction of a residential house property within the specified period:
In this case, the amount not so utilized shall be charged as capital gain of the year in which the period of 3 years from the date of LTCG expires and it will be taxable as LTCG of that year. The assessee then shall be eligible to withdraw the amount from the scheme. As per scheme, he is required to submit an application in Form G after getting the approval of the Assessing Officer.]

With above basic idea, it may be noted that temporary parking of the funds in fixed deposits/ bonds / post office certificates after the due date of furnishing the return of income, may obstructs your exemption claim u/s 54F. If you have to claim an exemption u/s 54F, you have to choose CGDAS as an investment tool for temporary investments of the funds.

Source: The Hitwada

Read More

Time Limit to Purchase the Immovable Property and Scheme of Deposits.

The transactions would come in the capital gain tax purview and the difference between the sale consideration and the indexed cost of acquisition would be taxable long term capital gain.

The long term capital gain tax arising from the transfer of plot could be saved u/s 54F if you invest the sale consideration for purchase of a residential house property/flat.

Time limit to Purchase the Property:
Exemption u/s 54F is available if the Assessee invests net sale consideration for purchase of a residential house property

• within One year before or two years after the date of transfer; or
• constructs a residential house within a period of three years from the date of the transfer of the original house.

Scheme of Deposits:
Although under section 54F, the taxpayer is allowed 2 years to purchase or 3 years for construction of the house property, but the capital gain on transfer of the original assets is taxable in the previous year in which the transfer took place. The return of income of that previous year is to be filed before the specified date i.e., due date. Hence, the tax payer will have to take a decision for the purchase/ construction of the house property before the date of furnishing of the return otherwise the capital gain would be taxable.

To avoid the above situation, the Income Tax Act has specified an alternative in the form of a Deposit under the Capital Gain Deposit Accounts Scheme-1988 (CGDAS). The amount of net sale consideration, which is not utilized by the assessee for purchase or constructions of the new house before the due date of furnishing the return of income, need to be deposited by him/her under the Capital Gain Accounts Scheme, before the DUE DATE of furnishing the return. After Deposits, the amount already utilized by the assessee for purchase/ cnstructions of the new house, along with the amount so deposited, shall be eligible for exemption under section 54F in the year in which LTCG has arisen. Later on, whenever you purchase the flat within a specified time slot, you can make the payment from the CGDAS.

Read More

Latest e-Tutorial for TDS on Sale of Immovable Property.

As per Finance Bill of 2013, TDS is applicable on sale of immoveable property wherein the sale consideration of the property exceeds or is equal to Rs 50,00,000 (Rupees Fifty Lakhs).

Sec 194 IA of the Income Tax Act, 1961 states that for all transactions 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.

Tax so deducted should be deposited to the Government Account through any of the authorized bank branches using the e-Tax payment option available at NSDL.

Download e-Tutorial PPT (Click Here)

Read More

Complete procedure for furnishing TDS, e-tax payment of TDS on property.

E-Payment facilitates payment of taxes online by taxpayers. To avail this facility the taxpayer is required to have a net-banking account with any of the Authorized Banks. Please follow the steps as under to pay tax online:-

Step 1 :

a) Log on to NSDL-TIN website (www.tin-nsdl.com).
b) Click on the option “Furnish TDS on property”.
c) Select Form for Payment of TDS on purchase of Property.

Step 2 :

After selecting the form you will be directed to the screen for entering certain information.

Example:-

a) Permanent Account Number (PAN) of Property Purchaser and Seller.
b) Address of the Purchaser, Seller as well as the Property being purchased
c) Financial Year during which the Purchase has been made
d) Major Head Code - To indicate the type of tax applicable viz; Tax on companies/Tax on other than companies
e) Value of Property
f) Date of agreement/booking
g) Amount Paid/credited (Transaction amount)
h) Rate of TDS
i) TDS Amount
j) Dates of payment/credit, deduction
k) Select the option for “Payment of taxes immediately”

It is important to ensure that PAN of Buyer and Seller are correctly mentioned in the form. There is no online mechanism for subsequent rectification. Deductor will have to approach the Assessing Officer or CPC-TDS for rectification of errors.

Step 3 :

After entering all the above detail, click on PROCEED button. The system will check the validity of PAN. In case PAN is not available in the database of the Income Tax Department then you cannot proceed with the payment of tax.

If PAN is available then TIN system will display the contents you have entered along with the “Name” appearing in the ITD database with respect the PAN entered by you.

Step 4 :

You can now verify the details entered by you. In case you have made a mistake in data entry, click on “EDIT” to correct the same. If all the detail and name as per ITD is correct, click on “SUBMIT” button. Nine digit alpha numeric ACK no. will be generated and you will be directed to the net-banking site provided by you.

Please be informed that the name and status of PAN is as per the ITD PAN Master. You are required to verify the name before making payment. In case any discrepancy is observed, please confirm the PAN entered by you. Any change required in the name displayed as per the PAN Master can be updated by filling up the relevant change request forms for PAN. If the name is correct, then click on "Confirm"

Step 5 :

After confirmation an option will be provided for submitting to Bank. On clicking on Submit to Bank deductor will have to login to the net-banking site with the user ID/ password provided by the bank for net-banking purpose and enter payment details at the bank site.

On successful payment a challan counterfoil will be displayed containing CIN, payment details and bank name through which e-payment has been made. This counterfoil is proof of payment being made.

Read More

Form-16B, Form 26QB and e-Payment of Tax on Sale of Property w.e.f. 1.06.13.

As per Finance Bill of 2013, TDS is applicable on sale of immoveable property wherein the sale consideration of the property exceeds or is equal to Rs 50,00,000 (Rupees Fifty Lakhs). Sec 194 IA of the Income Tax Act, 1961 states that for all transactions 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.

Points to be remembered by the Purchaser of the Property:

1. Deduct tax @ 1% from the sale consideration.
2. Collect the Permanent Account Number (PAN) of the Seller and verify the same with the Original PAN card.
3. PAN of seller as well as Purchaser should be mandatorily furnished in the online Form for furnishing information regarding the sale transaction.
4. Do not commit any error in quoting the PAN or other details in the online Form as there is no online mechanism for rectification of errors. For the purpose of rectification you are required to contact Income Tax Department.

Points to be remembered by the Seller of the Property:

1. Provide your PAN to the Purchaser for furnishing information regarding TDS to the Income Tax Department.
2. Verify deposit of taxes deducted by the Purchaser in your Form 26AS Annual Tax Statement.

To Furnishing Form 26QB (Click Here)

(Click Here) for e-Tax Payment on subsequent Date

What is Form 16B?

Form 16B is the TDS certificate to be issued by the deductor (Buyer of property) to the deductee (Seller of property) in respect of the taxes deducted and deposited into the Government Account.

From where will I get the Form 16B?

Form 16B will be available for download from the website of Centralized Processing Cell of TDS (CPC-TDS) www.tdscpc.gov.in

Read More

Complete procedure for paying the TDS on purchase of Property into the Bank subsequently.

Using this facility deductor (Buyer) can furnish the details online and make the payment of taxes subsequently either through net-banking account or by visiting any of the authorized bank branches. Following are the steps to avail this facility:

Step 1:
a) Log on to NSDL-TIN website (www.tin-nsdl.com).
b) Click on the option “Furnish TDS on property”.
c) Select Form for Payment of TDS on purchase of Property.

Step 2:
After selecting the form you will be directed to the screen for entering certain information.

Example:
a) Permanent Account Number (PAN) of Property Purchaser and Seller.
b) Address of the Purchaser, Seller as well as the Property being purchased
c) Financial Year during which the Purchase has been made
d) Major Head Code - To indicate the type of tax applicable viz; Tax on companies/Tax on other than companies
e) Value of Property
f) Date of agreement/booking
g) Amount Paid/credited (Transaction amount)
h) Rate of TDS
i) TDS Amount
j) Dates of payment/credit, deduction
k) Select the option for “Payment of taxes immediately”

It is important to ensure that PAN of Buyer and Seller are correctly mentioned in the form. There is no online mechanism for subsequent rectification. Deductor will have to approach the Assessing Officer or CPC-TDS for rectification of errors.

Step 3:
After entering all the above detail, click on PROCEED button. The system will check the validity of PAN. In case PAN is not available in the database of the Income Tax Department then you cannot proceed with the payment of tax.

If PAN is available then TIN system will display the contents you have entered along with the “Name” appearing in the ITD database with respect the PAN entered by you.

Step 4:
You can now verify the details entered by you. In case you have made a mistake in data entry, click on "EDIT" to correct the same. If all the detail and name as per ITD is correct, click on "SUBMIT" button. Nine digit alpha numeric ACK no. will be generated and you will be provided with an option to print an Acknowledgment slip.

Please be informed that the name and status of PAN is as per the ITD PAN Master. You are required to verify the name before making payment. In case any discrepancy is observed, please confirm the PAN entered by you. Any change required in the name displayed as per the PAN Master can be updated by filling up the relevant change request forms for PAN. If the name is correct, then click on "Confirm".

Step 5:
With the printout of the Acknowledgment slip, you may visit any of the authorized Bank branches to make the payment of TDS subsequently. The Bank will make the payment through its netbanking facility and provide you the Challan counterfoil as acknowledgment for payment of taxes. Based on the information in the Acknowledgment slip, the bank will make the payment only through net-banking facility by visiting tin-nsdl.com and entering the acknowledgement number duly generated by TIN for the statement already filled by the buyer in respect of that transaction.

In case you desire to make the payment through e-tax payment (netbanking account) subsequently, you may access the link ‘View/Payment of TDS on property” on the TIN website. On entering the details as per the acknowledgment slip, you will be provided an option to submit to the bank wherein you have to select the Bank through which you desire to make the payment. You will be taken to the netbanking login screen wherein you can make the payment online.

Read More

e-Payment complete procedure of TDS on Sale of Immovable Property.

What is the procedure for paying the TDS amount into the Bank subsequently, i.e. not immediately after furnishing the purchase transaction details online?
 

Using this facility deductor (Buyer) can furnish the details online and make the payment of taxes subsequently either through net-banking account or by visiting any of the authorized bank branches. Following are the steps to avail this facility:

Step 1

• Log on to NSDL-TIN website (www.tin-nsdl.com).
• Click on the option “Furnish TDS on property”.
• Select Form for Payment of TDS on purchase of Property.

Step 2
After selecting the form you will be directed to the screen for entering certain information.
Example:-

• Permanent Account Number (PAN) of Property Purchaser and Seller.
• Address of the Purchaser, Seller as well as the Property being purchased
• Financial Year during which the Purchase has been made
• Major Head Code - To indicate the type of tax applicable viz; Tax on companies/Tax on other than companies
• Value of Property
• Date of agreement/booking
• Amount Paid/credited (Transaction amount)
• Rate of TDS
• TDS Amount
• Dates of payment/credit, deduction
• Select the option for “Payment of taxes immediately”

It is important to ensure that PAN of Buyer and Seller are correctly mentioned in the form. There is no online mechanism for subsequent rectification. Deductor will have to approach the Assessing Officer or CPC-TDS for rectification of errors.

Step 3

After entering all the above detail, click on PROCEED button. The system will check the validity of PAN. In case PAN is not available in the database of the Income Tax Department then you cannot proceed with the payment of tax.

If PAN is available then TIN system will display the contents you have entered along with the “Name” appearing in the ITD database with respect the PAN entered by you.

Step 4

You can now verify the details entered by you. In case you have made a mistake in data entry, click on "EDIT" to correct the same. If all the detail and name as per ITD is correct, click on "SUBMIT" button. Nine digit alpha numeric ACK no. will be generated and you will be provided with an option to print an Acknowledgment slip.

Please be informed that the name and status of PAN is as per the ITD PAN Master. You are required to verify the name before making payment. In case any discrepancy is observed, please confirm the PAN entered by you. Any change required in the name displayed as per the PAN Master can be updated by filling up the relevant change request forms for PAN. If the name is correct, then click on "Confirm".

Step 5

With the printout of the Acknowledgment slip, you may visit any of the authorized Bank branches to make the payment of TDS subsequently. The Bank will make the payment through its netbanking facility and provide you the Challan counterfoil as acknowledgment for payment of taxes. Based on the information in the Acknowledgment slip, the bank will make the payment only through net-banking facility by visiting tin-nsdl.com and entering the acknowledgement number duly generated by TIN for the statement already filled by the buyer in respect of that transaction.

In case you desire to make the payment through e-tax payment (netbanking account) subsequently, you may access the link ‘View/Payment of TDS on property” on the TIN website. On entering the details as per the acknowledgment slip, you will be provided an option to submit to the bank wherein you have to select the Bank through which you desire to make the payment. You will be taken to the netbanking login screen wherein you can make the payment online.
 

What do I do if I have misplaced the Acknowledgment slip for payment through the Bank branches?

You may access the access the link ‘View/Payment of TDS on property” on the TIN website. On entering the details as per the acknowledgment slip, you will be provided options to either Print the Acknowledgment Slip.

In case you desire to make an online payment, on the same screen option for Submit to the bank is provided wherein you have to select the Bank for payment. You will be taken to the netbanking login screen wherein you can make the payment online.

Read More

TDS on Sale of Immovable Property, e-Payment, e-Tutorial & FAQs.

As per Finance Bill of 2013, TDS is applicable on sale of immovable property wherein the sale consideration of the property exceeds or is equal to Rs 50,00,000 (Rupees Fifty Lakhs). Sec 194 IA of the Income Tax Act, 1961 states that for all transactions 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. Tax so deducted should be deposited to the Government Account through any of the authorized bank branches.
 

Facility for furnishing information regarding the transaction of sale of immoveable property and payment of TDS thereof is available on this website.
 

Detailed procedure, user friendly e-tutorial, list of Bank branches authorised to accept TDS and Frequently Asked Questions (FAQs) are available on this website for reference.

Points to be remembered by the Purchaser of the Property:

1. Deduct tax @ 1% from the sale consideration.
2. Collect the Permanent Account Number (PAN) of the Seller and verify the same with the Original PAN card.
3. PAN of seller as well as Purchaser should be mandatorily furnished in the online Form for furnishing information regarding the sale transaction.
4. Do not commit any error in quoting the PAN or other details in the online Form as there is no online mechanism for rectification of errors. For the purpose of rectification you are required to contact Income Tax Department.

Points to be remembered by the Seller of the Property:

1. Provide your PAN to the Purchaser for furnishing information regarding TDS to the Income Tax Department.
2. Verify deposit of taxes deducted by the Purchaser in your Form 26AS Annual Tax Statement.

Frequently Asked Questions

Online form for furnishing TDS on property (Form 26QB)

E-tax payment on subsequent date

List of Authorized Banks for e-payment

Read More