Under The Income Tax Act 1961, a few TDS rules regarding the sale and purchase of immovable property have been laid out.

According to section 194IA of the Income Tax Act, TDS@ 1% is applicable on the purchase of immovable property. The property here includes every immovable property like House Property, Commercial property, Plot, Agricultural Land or Unconstructed land.

The buyer of the property, also known as the deductor, is required to deduct TDS @1 % from the consideration payable to the property sellerif the transaction value is more than ₹50 lakhs, and the deductor is required to issue Form-16B i.e. TDS Certificate to the deductee (seller).The Sale deed should reflect the amount paid to the seller as well as the amount deducted and paid as TDS against the sale.

Buyer of the property needs to deduct the 1% TDS amount from amount payable to seller &Fill Form 26QB i.e. Payment Challan cum return & Issue Form 16B I.e. TDS certificate to the deductee. All this is to be done within 30 days from the end of the month in which dale document is executed.

Details required to start with filling Form 26QB
PAN of Buyer & seller, Property description, Agreement date, Agreement value, Address of buyer & seller, Contact details Mobile No & Mail Id of Buyer & seller

*Form 26QB doesn’t allow to include more than one buyer or seller in a single form 26QB for that you need to file separate form 26QB for their respective share in the property.

*If payments are made in instalments, then on every instalment TDS is to be deducted & paid.

There are different modes of payment like Net banking, Debit Card, Credit Card, UPI, RTGS/NEFT & others available on the portal for TDS payment, you can pay by any mode. after payment need to wait for 4-5 days to get processed the statement on the portal & after that need to apply for form 16B i.e. TDS certificate.

The most commonly mistake while filling 26QB is 
when sellers are more than one i.e. Joint owners and you have paid entire TDS on the name of one buyer.

Or

When buyers are more than one i.e. Joint buyer & you have paid entire TDS from the PAN of one. 

In both the cases you need to file online correction statement from traces portal then need to file separate form 26QB for the missed joint owner buyer as well as seller for their respective share in the property & claim the excess amount paid in original form 26QB as refund by online filling form 26B.

What we offer:
We offer everything in related to TDS on property transactions, after property document execution from Capital Gain calculation to Form 26QB filling, Issue of TDS certificate within time bound manner, correction if any required & refund of excess TDS paid if any. these services are provided at PAN India.

For details Call at http://wa.me/9028227524 or mail at office@capmco.in or reach at www.capmco.in
Shop No 109, Kashi Appartment, Nandanvan Main Road, Nagpur 440032