Understand the Overview of TDS on Property Sale or Transfer, and learn how to file TDS in just minutes with EZTDS. TDS to be paid on proceeds from a Sale of a Property
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|Transaction value of the property purchased||60,00,000/-|
|Service Tax on property||2,00,000/-|
|Vat on property||60,000/-|
|Total amount payable||62,60,000/-|
In the above example TDS should be deducted on the transaction value of property. That is on Rs. 60,00,000 and not on Rs.10,00,000 that is the amount exceeding Rs.50,00,000. Therefore, The amount of TDS will be 1% of Rs. 60,00,000 that is Rs.60,000.
TAN registration for the buyer of property deducting tax under section 194IA is not mandatory. A buyer can directly pay TDS using his PAN number and form 16B is to be given to seller which can be generated from TDS traces site.
In case you need TAN number, you may use our TAN Registration Service
Due dates are same as applicable to all other sections of TDS. It means TDS should be deducted by the buyer at the time of making payment and has to be deposited within 7 days from the end of the month.
Additionally, you may visit the latest Comprehensive Tax Compliance Calendar to know upto date due dates.
A Challan cum form namely 26QB is to be submitted to the government at the time of payment. This form should contain all the details of transaction, Such as details of property, Pan Numbers of parties and the amount of TDS deducted.
Learn More On Guide on TDS On Sale Of Immovable Property
In case of more than one buyer and one seller form 26QB is to be filed for each buyer seller combination.
Example : In case of 2 buyers and 2 sellers, four forms have to be submitted.