WHAT IS TDS ON PROPERTY?
The Finance Bill 2013 has proposed that purchaser of an immovable property (other than rural agricultural land) worth Rs 50 lakh or more is required to pay withholding tax at the rate of 1% from the consideration payable to a resident transferor.Buyer of the property would have to deduct the TDS and deposit the same in Government treasury.Buyer of the property is not required to procure Tax Deduction Account Number (TAN). The Buyer is required to mandatory quote his or her PAN and sellers PAN.
- For example, If amount of property sold is 70 Lakhs, would TDS be calculated at 20 Lakhs or on 70 Lakhs?
TDS is to be deducted on the amount paid/credited to the seller. In the above e.g. the deduction will be on total amount i.e. on 70 Lakhs.
WHAT IS FORM 26QB?
The online form available on the TIN website for furnishing information regarding TDS on property is termed as Form 26QB. It is a challan-cum-statement in Form No. 26QB to be filled electronically within seven days from the end of the month in which the tax deduction is made.
WHAT IS FORM 16B?
Form 16B is the TDS certificate to be issued by the deductor (Buyer of property) to the deductee (Seller of property) in respect of the taxes deducted and deposited into the Government Account. Form 16B will be available for download from the website of Centralized Processing Cell of TDS (CPC-TDS) www.tdscpc.gov.in