TDS payment on property and how to obtain form 16B and 26QB

W.e.f. 1^st June, 2013 a new TDS section 194-IA brought into effect which states that TDS on transactions of immovable property is to be deducted at 1% where the consideration for the transfer of immovable property other than agricultural land exceeds Rs. 50 lakhs. Many People do not know how to make the Make the payment of TDS and how to obtain necessary forms. Here is the simple guide about making payments of TDS and obtaining form 16B for the buyer and form 26QB for the seller.

Below are the steps given to make the payment and obtain Form 16B (for the deductor or buyer) and Form 26QB for the (seller or deductee).

Firstly one has to go to the following link:

https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp

This is the same link through which we make the online payment of Advance Tax, Self assessment Tax.

•  Once this link is opened click on Form 26QB (Payment of TDS on sale of property).
• Select (0021) in case of non corporate payer and 0020 in case of corporate payer.
• On filling in the various details like Pan of Transferor and Transferee, Address of Transferor and Transferee  Address of property and very Important Amount paid/Credited (Mention Amount payable to the Transferor/Seller) click on ‘Proceed’ at the bottom of the page, this will then take you to the next page, which will give you the option to select your bank.
• Once you select the bank, then follow the same process that you use for making the advance tax self assessments and TDS payment.

• Once the payment is made the bank will let you print challan 280 with a tick on (800), which is payment of TDS on sale of property.
• Take a printout of the challan and keep the same for your records and for the builder/seller if required.

This is the first phase of the process. Once this is completed one has to wait for seven days for the details to be reflected on TRACES web site – https://www.tdscpc.gov.in/. As a first time user, you will have to register on this website. Once you register whether as seller or buyer, you will be able to obtain the Form 16B or 26QB which has been approved and is reflected against your PAN in your Form 26AS.

Check Form 26 AS after seven days and you will notice that the payment you had effected against TDS on sale of property is reflected in Part F of the Form 26 AS under ‘Details of Tax Deducted at Source on Sale of Immoveable Property u/s 194(IA) [For Buyer of Property]. This will give you details such as the TDS certificate number (generated by TRACES), name of deductee, PAN of deductee, acknowledgement number, total transaction amount, transaction date, TDS deposited, date of deposit, status of booking and date of booking.

Once the payment is reflected in 26AS as above, you will have to go to the TRACES again. Login to the website, and click on ‘Downloads’ tab. In the dropdown menu click on ‘requested downloads’. If no application has been made you will be asked to make a request for download, here fill in the acknowledgment number (nine digit number) which is reflected on Form 26AS Part F as mentioned above. Once this is done, you will be able to view the status of your application, which generates an application request number.

Within a couple of hours, the application gets processed and you will be able to view your Form 16B by putting in the request number which you have obtained. You can take a printout of the same for your records as well as for handing over to the seller of the property. A similar process has to be followed by the seller to obtain form 26QB.

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