To initiate TDS filing for your property transaction, share the following documents via email or upload to EZTax.
Property TDS filing under Section 194-IA is mandatory for all purchases exceeding ₹50 lakhs. Missing the 30-day challan payment deadline invites penalties and interest. EZTax ensures timely, compliant filing with expert guidance on PAN verification, challan computation, and statutory documentation.
What is TDS on property (Section 194-IA)?
When you purchase immovable property (land, building) valued above ₹50 lakhs from a resident individual, you are required to deduct 1% TDS (Tax Deducted at Source) from the seller's consideration and deposit it with the government within 30 days of deduction.
When is TDS at 1% applicable?
TDS at 1% is applicable when: (1) Property is immovable property other than agricultural land, (2) Value exceeds ₹50 lakhs, (3) Buyer is resident and transferor is resident, (4) Seller's PAN is available. If seller's PAN is unavailable, TDS at higher rate (20%) applies.
Who deducts TDS and who files Form 141?
The buyer (purchaser) deducts TDS and is responsible for filing Form 141 (Form 26QB) within 30 days of the month in which deduction was made. The Form 26QB is filed electronically on the NSDL TDS portal.
What is Form 16B and why is it needed?
Form 16B (Form 132 under new Act) is the TDS certificate issued by the buyer to the seller. It certifies the amount of TDS deducted and deposited. The seller needs this for ITR filing to claim credit for TDS paid by the buyer on their behalf.
What is the deadline for TDS payment?
TDS must be deposited within 30 days from the end of the month in which deduction was made. For example, if TDS is deducted in March, it must be paid by 30th April. Late payment attracts interest and penalties.
What if seller's PAN is not available?
If the seller is not available or refuses to provide PAN, TDS is deducted at the higher rate of 20% instead of 1%. You can later claim exemption if seller's PAN is obtained and provided within the prescribed time frame.