Home > TDS > TDS On Sale Of Immovable PropertyLast Updated: Dec 05th 2023
Form 26QB is a challan-cum-return statement for reporting the transactions liable to TDS on Sale of an Immovable Property u/s 194-IA.
Explains TDS on Immovable Property, applicability, threshold limits, rates of TDS, Time of Deduction, requirements to prepare TDS return and filing TDS under Section 194-IA
This document covers
For quick and efficient collection of taxes, the Income-tax Law has incorporated a system of deduction of tax at the point of generation of income. This system is called as “Tax Deducted at Source”, commonly known as TDS.
The Finance Act 2013-14 introduced TDS on Payment on transfer of certain immovable property other than agricultural land at the rate of 1% where the consideration for the transfer of an immovable property is Rs.50 Lakhs or above u/s 194-IA.
In respect of payments on sale of property:
TDS to be deducted and quarterly TDS return to be filed for every payment made to the seller. Not a consolidated TDS deduction and payment.
In case of a house loan disbursement through monthly installments, for every installment, one need to deduct and file appropriate TDS returns.
Disclaimer: This article provides an overview and general guidance, not exhaustive for brevity. Please refer Income Tax Act, GST Act, Companies Act and other tax compliance acts, Rules, and Notifications for details.