TDS for Real Estate Sale of Rs 50 lakhs; this was announced during budget 2013-14 and now it has come to an effect from June 1, 2013.

The Central Board of Direct Taxes (CBDT) has notified the new provision of Tax Deducted at Source or TDS on immovable property. You will now have to deduct tax when you make the payment to the seller if the cost of the immovable property (other than agricultural land) exceeds Rs 50 lakhs under section 194IA.

TDS on Sale of Property

In this case the person required to deduct TDS would not necessary to obtain TAX Deduction Account Number (TAN). The rate at which tax is to be cut is 1%, but it would go up to as high as 20% if the seller does not disclose his/her permanent account number. The provision will apply even when the property has been financed through a bank loan. SO the buyer will have to ensure either he himself or the bank deducts tax before disbursing the loan to the seller.

This provision would only apply to payments being made on or after June 1, 2013, and would not apply to payments made for the same property prior to June 1, 2013, when the relevant law was not in force. The provision will also apply in cases where buyer bought an under construction property prior to the provision coming into effect but has to make the balance payment after June 1, 2013.

Payment of such TDS requires mandatory quoting of Permanent Account Number (PAN), it also asks for address of the transferor and transferee along with the address of the property transaction. Further ePayment of such TDS is made available by CBDT.

The new form for TDS payment is available on TIN-NSDL which has to be filled online for: e-Payment of TDS on Sale of Property.

If a person does not have the facility to pay tax online, he can take the printout of the duly filled form and make payment on any authorised branch. The income tax authorities have done away with the mandatory requirement of Tax deduction and account number for buyers. The buyer will be able to generate the TDS certificate from I-T department’s website and provide it to the seller.

Now pay TDS on Immovable Property over Rs. 50 lakhs; ePayment Mandatory

143 thoughts on “Now pay TDS on Immovable Property over Rs. 50 lakhs; ePayment Mandatory

  • June 7, 2013 at 1:45 PM
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    PLEASE CLEAR HOW TDS CERTIFICATE WILL BE GENERATED REGARDING TDS ON IMMOVABLE PROPERTY OVER RS. ONE CRORE.

    Reply
    • August 27, 2013 at 11:26 AM
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      I HAVE DEDUCTED TDS ON TRANSFEROR AND DEPOSITED THE SAME ON BANK ON LINE BUT UNABLE TO GENERATE TDS CERTIFICATE. KINDLY LET US TELL/CONFIRM HOW TO GENRATE TDS CERTIFICATE TO THE TRANSFEROR OF THE PROPERTY.

      ALOK

      Reply
      • August 27, 2013 at 2:31 PM
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        Hi Alok,

        Currently generating TDS certificate option is not available. You can download form16B with the link given below and issue the said certificate to the seller.
        http://ow.ly/oiA1p

        Reply
        • August 30, 2013 at 11:51 AM
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          The traces site says register to download form 16B but unable to do so. It says invalid details for registering even though I have filled all details correctly.

          Reply
    • December 4, 2013 at 12:51 AM
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      Dear sir, I have deducted the tds on the 28th of nov and the bank gave me a receipt containing cin no , acknowledgement number,bsr code. Is this form enough to give the seller or is if mandotary to give form no 16b from traces? I am unable to register at traces as I put my pan number it says in vlid details.

      Reply
      • December 4, 2013 at 4:11 PM
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        Hi Jay,

        Sometimes such technical issue arise, I suggest you try after 4-5 days. Yes! it is required to issue form16B to the seller.

        Reply
  • June 22, 2013 at 10:53 AM
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    I bought a flat with a reputed builder in Bangalore. Have paid all the money to the builder in the month of April 2013 itself. Due to some reason I am planning to go for registration in the month of June 2013.

    Will 1% TDS be applicable in this case?

    Reply
    • June 22, 2013 at 11:35 AM
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      Hi Sandy,

      The said provision is applicable to any payment to seller on or after June 1, 2013. Since you have indicated, all the payments have been done before this date, then no such TDS will be levied.

      Reply
  • June 22, 2013 at 1:58 PM
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    Hi Mr S K Patra,
    I bought a property in re-sale last year october (in soft launch), where construction had not started. I paid 35% of the 62 lakh property. The construction is yet to commence. So the loan disbursement has not started. Do I need to pay 1% TDS, applicable from 1 June 2013? If yes, is it the seller or buyer who pays this 1% TDS?
    Thank you,
    Regards,
    Rohan

    Reply
    • June 22, 2013 at 10:26 PM
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      Hi Rohan,

      Any payment on or after June 1, 2013 this 1% TDS will be applicable. For your clarification such TDS should be deducted by buyer (here you) before making the payment to the seller of the property. Since you mentioned you have chosen bank finance for funding the purchase, thus either you or the bank should ensure the deduction of TDS happens before making any payment.

      Reply
  • June 23, 2013 at 12:14 PM
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    Hi Mr. Patra
    I brought land from Andhra Pradesh Housing Board last year oct through auction for amount 65lacs. My loan was approved on Feb and entire amount has been paid to APHB in Mar 2013. On Jun 22 2013 when I went to registration office to register the land I was asked to pay 1% TDS which I said is not applicable since the payments were done before June 1 2013. He suggested me to contact any CA and get confirmation later he will process the file for registration. Can you please advise

    Thanks
    Shiva

    Reply
    • June 23, 2013 at 4:30 PM
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      Hi Shiva,

      The said provision is only apply to any payments being made on or after June 1, 2013, and would not apply to payments made for the same property prior to 1 June 1, 2013. Since you have made all the payments during February 2013 itself then there is no point of such TDS is being applied. For more clarity you can directly call NSDL at 020 – 27218080. Even I would suggest you to write a mail to them at tininfo@nsdl.co.in explaining the issue. They really help, don’t worry.

      Reply
  • June 23, 2013 at 4:14 PM
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    Hi Soubhagya,

    Say, I purchase a property worth 60 lacs (excluding registration charges) in 2012 and have already paid 20 lacs till 31.05.2013. Now, the amount pending effetive 01.06.2013 is 40 lacs. In such case, will TDS be applicable? If yes/no, wherein in the IT actor circular, I can find reference for the same.

    Regards
    Rajesh

    Reply
  • June 25, 2013 at 8:34 AM
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    I am a buyer and deduct the TDS and paid it online on 10th June. I got the CIN which I quoted in the Sale Deed but I have no clue on how to generate the Form 16B and issue the TDS certificate to the seller. I expected to get such link while making the payment on https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp but after the successful payment attempt, there was not further link to generate the Form 16B. I have tried on https://www.tdscpc.gov.in/en/home.html and even sent them an email but haven’t heard on how to generate the Form 16B which I have to issue to the seller before 25th July. I found the format on website but I expect TRACES or some government website to help to generate the Form 16B.

    Reply
    • June 25, 2013 at 12:09 PM
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      Hi Gulshankumar,

      Here I would suggest you to write a mail to NSDL at tininfo@nsdl.co.in or call them at 020 – 27218080. You will certainly get some help from them.

      Reply
    • June 27, 2013 at 7:20 PM
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      Hi Gulshan,

      I am facing similar issue as well. Tell me one more thing – Is CIN showing only details of buyer or seller as well? In my case – CIN generated from bank have no details of buyer whereas I entered all information correctly.

      Rohit

      Reply
      • July 2, 2013 at 12:02 PM
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        The Taxpayers Counterfoil (bearing CIN) shows the details of the person who deposited the TDS online which is supposed to be the buyer as it is buyer’s duty to deduct the TDS and deposit. I am the buyer and in my Taxpayers Counterfoil, I do see my name and PAN card other than payment details.

        Reply
    • June 28, 2013 at 8:55 AM
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      Hi Gulshankumar,

      Further update to your query is here you need to file and issue 16B for TDS manually as right now such TDS certificate is not available to generate online just the way it happens with form 16A.

      Reply
      • July 2, 2013 at 12:05 PM
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        After my continuous follow up with TDSCPC, I have realised that they are going to provide the link for generating Form 16B very soon. However, if they don’t provide such link by the due date, I will manually issue the TDS certificate and will mention in that as soon as I get the link to generate TDS certificate from TDSCPC, I will generate and reissue the Form 16B

        Reply
        • July 2, 2013 at 1:04 PM
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          That’s great!

          Reply
        • July 25, 2013 at 12:23 PM
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          Hello all, I am facing the same issue that I don’t find a way to print the TDS certificate as buyer and my seller is asking for the same. Please keep updated once you get link to do the same. In the meantime can someone tell me how to print the form 16B manually?

          Reply
          • July 25, 2013 at 12:57 PM
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            Hi Asif,

            Seems you need to fill up the 16B manually. It’s not at all a difficult thing to do. If you have paid the Tax, then you will have all the payment details, PAN, Challan etc, that’s it. You just need enter these info only and sign.

  • June 25, 2013 at 2:18 PM
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    Hello,

    I am not clear if this is applicable on “new property” built by builder…My overall value including construction is more than 50L – but UDS registration is less than 50L.

    Does it mean I have to cut TDS on overall value – or ignore notification, since UDS registration is less than 50 lakhs.

    Please clarify. Thanks!

    Anantha

    Reply
    • June 25, 2013 at 3:45 PM
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      Hi Anantha,

      It is immaterial whether property is new or old. This is about any transaction on or after June 1, 2013 exceeding Rs. 50Lakhs. Here if you have to pay more than Rs. 50 lakhs to the builder as a total consideration amount then you can not ignore the said notification.

      Reply
      • June 28, 2013 at 1:23 PM
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        Hello Soubhagya – Thank you. Builder is asking for link to exact notification. I searched in google and can’t find it.

        Can you please post a link to it. Thanks, Anantha

        Reply
        • June 28, 2013 at 2:02 PM
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          Hi Anantha,

          You just have to search for the section 194IA for the same, you will get all the relevant details pertaining to the said provision.

          Reply
  • June 26, 2013 at 6:37 AM
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    I am purchasing an under-construction property in re-sale. Total value is – 70L, out of which 35L has been paid by the seller to the builder before 1 June.
    So Now I need to pay 35L to the seller directly, and remaining 35L to the builder in the next 2 years. Please clarify how the TDS will be calculated here ? Whether I need to pay TDS for seller or for builder …. ?

    Reply
    • June 26, 2013 at 8:34 AM
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      Hi Rajesh,

      You just have to calculate 1% of the amount that you are going to pay. For payment of TDS, you need deduct this for the current owner of the property.

      Reply
  • June 28, 2013 at 11:47 AM
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    can you please guide me on the new CBDT notification of TDS on immovable prop > 50 lacs. I have purchased a property whose base price is Rs. 48 lacs but exceeds 50 lacs after adding maintainence deposit+doc charges+service tax+MGVCL deposit. Does the value of property is inclusive of above? I understand it should not be as deposits/service tax is not an income of the builder, hence should not be considered. Can you please check & advise?

    Reply
    • June 28, 2013 at 12:12 PM
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      Hi Jatin,

      The said provision is applicable if the sale consideration exceeds Rs. 50Lac that means the amount you are required to pay to the builder/seller (which has to be treated as his income). Thus any expenses/tax paid to govt should not be a part of sellers income. In such case if the property value is less than Rs.50Lacs then you don’t have to deduct TDS. But check once the sale agreement.

      Reply
  • June 28, 2013 at 12:53 PM
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    Hi Soubhagya,

    Couple of queries:

    1. Does CIN (challan) shows seller information?

    2. How to generate TDS (Form 16B) manually or online, Can you please help with detailed steps if you know.

    Thanks a lot for all the help you are doing here!

    Reply
      • July 1, 2013 at 2:50 PM
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        Hi Soubhagya

        Thank you for your inputs, We are facing two issues:

        1. TDS Challan receipt generated after payment via netbanking does not contain any informtion of seller. It’s divided into two halfs:
        a) Left hand side lists Tax payer Counterfoil, which have Buyer’s PAN, Name and Amount. Also mentioned – PAN ON ACCOUNT OF INCOME
        TAX ON: Major Head :OTHER
        THAN COMPANIES TAX[0021]
        Minor Head : TDS on Property
        [800].
        b) Right hand side lists – Payment status (Success), SBI Ref No., CIN – BSR Code, Tender date, Challan No. and date of challan.

        So, basically it doesn’t have any information regarding seller, Would request others to confirm if they are getting sellers info as well..

        2. Amount has been deposited via netbanking about 7-8 days ago but till now it is also not showing in Form 26AS online on income tax website for seller. how long does it take to reflect this amoutn in form 26AS on traces website?

        Thanks

        Reply
        • July 1, 2013 at 9:34 PM
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          Hi Rohit,

          Thanks for sharing this info, let me verify with others as well and get back to you.
          In the second case, are you checking the buyer’s 26AS form or Seller’s 26AS form? Such TDS deduction will show in seller’s 26AS form. If it hasn’t yet reflected, just wait. It may take 20-25 days to get updated.

          Reply
          • July 4, 2013 at 4:28 PM
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            Soubhagya,

            I am checking in Seller’s 26AS only. I think the issue is that these payments are going for Assesment Year 2014-15 whileas in Traces website there is no option to select 2014-15 as of now. You can only see Form 26AS till AY 2013-14.

          • July 5, 2013 at 12:46 AM
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            Oops! I missed this small point. Yes, you are right this is for AY 2014-15. Thanks Rohit.

  • July 6, 2013 at 2:13 PM
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    Hi Soubhagya
    I see that you have been very helpful in providing the info on this new rule. So thanks for that! I have few queries and would appreciate whatever help you can offer.
    I have brought a property which is under-construction and worth more than 50 lakhs overall and have made some payment before 1st June to the builder. I do understand that i don’t need to pay the taxes for any transactions done before 1st of June.
    1. However the remaining payments are made by the bank. So whose liability is to make the tax payment. Its the bank or the individual. If it is banks so will that amount be adjusted against the EMI?
    2. I read that we need to deduct the tax and make the payment so does it in effect doesn’t put a load to buyer or seller? I mean if the property value is 5oL, so will the 1% tax be added and the new value will be 50,000 more than 50L or it has to be included within 50L effectively reducing the price for the seller.
    3. Since it is under-construction property the payment is done every two months. So do i need to make the TDS payment every two months? Can it not be clubbed after lets say quarterly or half-yearly or may be after the full payment.
    4. Do i need to fill 26QB every time a payment is made and submit the form 16B to the builder? Also is there any timeline as to how soon it has to be filled after the payment is made. I do understand after 26QB is submitted we need to make the TDS payment within 7 days but is there any timeline for filling 26QB after the payment has been made?
    Thanks!

    Reply
    • July 6, 2013 at 8:13 PM
      Permalink

      Hi Vikash,

      Answers to your queries are; (serial wise)

      1. The provision says that, even if the property is financed by bank, it’s the buyer’s responsibility to ensure deduction of TDS happens either by bank or by the buyer himself/herself before any payment is made to the seller. Remember TDS is a liability for seller and deduction of this TDS is the responsibility of the buyer.

      In this section it has clearly mentioned while payment of TDS happens, such TDS will be deducted only on the principal amount not on the interest that you pay to bank. However your loan disbursement happens first to seller then you keep paying back to Bank, thus this TDS should be applicable on disbursement amount not on EMIs.

      2. I believe it should not be affecting anyways, as TDS will be decided on the total consideration. This 1% will not be added to the property value, because it’s a part of the property’s total consideration value.

      3. Whenever any payments made to seller each time TDS has to be deducted. This cannot be kept pending to be paid at one go.

      4. Yes, you need to fill 26QB each time before you make payment to seller. The person responsible for deduction of tax under section 194IA shall furnish the certificate of deduction of tax at source in Form No. 16B to the payee within fifteen days from the due date for furnishing the challan-cum-statement in Form No. 26QB.

      Reply
  • July 15, 2013 at 1:37 PM
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    Hi Mr. Patra, Can you please clarify what you mean by gross consideration. Does consideration only mean the buying rate or also the service tax, MVAT, stamp duty, registration, society charges, legal charges etc. I have bought a underconstruction property of which around 50% is paid before June. Please help…

    Reply
    • July 15, 2013 at 3:24 PM
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      Hi Tanya,

      TDS needs to be deducted on the consideration amount between you and the seller. In short the amount which is gong in the hands of seller. Service Tax, Stamp Duty and other Govt charges shpuld not be included while you deduct the said 1% of TDS under the provision.

      Reply
  • July 15, 2013 at 4:24 PM
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    Dear Mr. Patra
    There are two buyers in our case with different ownership ratio say A-70% and B-30%.
    Please guide whether both of them are required to file Form 26QB separately for there share of payment or only one buyer say A can file the form for the entire amount.

    Reply
    • July 15, 2013 at 5:06 PM
      Permalink

      Hi Rajesh,

      Here two buyers have to deduct TDS 1% proportionately (30:70 of the consideration) and file 26QB separately.

      Reply
  • July 23, 2013 at 7:39 PM
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    Hi,
    I have two queries.
    1. should we pay the TDS before or after registration?
    2. In case there are 2 sellers(joint ownership) and I am making the total payment to only one(via DD), should I make 2 TDS certificates ( as the sellers are demanding for tax benefits) or will this create problems? Thanks a lot

    Reply
    • July 23, 2013 at 8:36 PM
      Permalink

      Hi Soumita,

      You need to make the pay TDS as and when you make any payments to seller. Even one booking amount payment you need to ensure TDS is deducted or reserved for payment. Answer to your second query, yes you need to fill 26QB twice for each owner (seller) basis their proportion and prepare TDS certificate.

      Reply
  • August 1, 2013 at 5:07 PM
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    Hi
    a. I have booked a flat which is more than 50 Lakh.
    b. My Sales Agreement date is in May 2013 – this is prior to June 1 2013.
    c. I have paid 20% of the Total Sale Consideration in May 2013.
    d. I have paid further 10% of the Total Sale Consideration in June 2013.
    e. Rest installments will be paid over next three years time.
    My queries are:
    Whether I have to deduct TDS for this property?
    If yes, whether I have to deduct 1% of Total Sale Value once for all from the next installment or
    I have to deduct 1% on each subsequent installments – till the last payment?
    If I have to deduct 1% on each subsequent installment payments, how that 1% will be calculated? Every time on “Total Sale Consideration” or for “that installment demand” (excluding ST)?
    If I have to deduct 1% TDS on each subsequent installment payments, do I have to file them online every time and provide a TDS certificate to Seller or I can file the total deduction once and generate One TDS certificate?

    Please help to clear my doubts.
    Thanks in advance.

    Reply
    • August 1, 2013 at 7:06 PM
      Permalink

      Hi Sudip,

      Find answers below in sequence to your queries;

      >> Yes, you have to deduct TDS, because total consideration is beyond Rs. 50Lacs.
      >> You need to deduct 1% TDS only on the amount paid/payable on or after June 1, 2013. And make sure you deduct TDS in each installments, do not keep anything to be deducted at lum psum for the paid installments.
      >> 1% TDS on each installment without any ST
      >> This I have answered in second point.

      Reply
      • August 1, 2013 at 7:38 PM
        Permalink

        Hi
        Many thanks for clearing the doubts.
        One more clarification – How to take care of the payment that I have made in June 2013 and not deducted any TDS?

        Thanks again.

        Reply
        • August 1, 2013 at 9:57 PM
          Permalink

          Hi Sudip,

          Since it is required to deduct TDS before making the payment, but in your case you have already done the payment to builder/seller without charging TDS, in such case you can now go ahead (without any delay) and make the TDS payment. But before that talk to the builder/seller that you may adjust this TDS amount (might require to pay from your pocket) in future payments to them. Or ensure some refunds to be done from their side. They should not say no to this.

          Reply
  • August 1, 2013 at 6:03 PM
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    Hi Soubhagya,

    I am buying an apartment & If we have paid payment to builder on different dates for example 1 Lakh on booking, 7 Lakh after 10 days of booking & 5 Lack after 20days….All in the same month of JULY…Then should we have to pay TDS separately? Which means we have to submit form26QB freshly every time we pay to builder? OR Can we consolidate all the payment done in the month & once for all file & submit single form26QB the subsequent month? In this case what should be mentioned in the date of payment / credit line item?

    Actually we have already made this part payments & we were not aware of TDS rule. Now we have amount which needs to be paid to builder & want to deduct for the entire amount paid post June 1st 2013 at once. Is this ok?

    Reply
    • August 1, 2013 at 7:13 PM
      Permalink

      Hi Raghav,

      Do not go for consolidated TDS payment. File 26QB separately for each installments that you made so far or going to make. For date of payment & credit, you can mention the cheque issue/payment transfer date (this will not have any problem I guess)

      Reply
      • August 2, 2013 at 10:10 AM
        Permalink

        Thanks Soubhagya for your quick clarification. I will do so & I think once separate 26QB is filed I can give one Form16B mentioning all the CIN details to Builder correct?

        Also any idea when Form16B will be automated or by when can we generate this from Government portal instead of doing this manually?

        Reply
        • August 2, 2013 at 12:37 PM
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          Yes, but no idea so far about online 16B.

          Reply
  • August 2, 2013 at 9:53 AM
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    Hi

    I sold my property recently in July. I had received the part payment from the owner directly and the major portion (his loan amount) from his bank. But neither of them deducted TDS on the amount. I’m planning to buy another property within 2-3 months and re-invest the entire amount. Am I liable to pay the TDS directly to govt? Would I or the buyer attract any penalty from the income tax dept later on?

    Thanks

    Reply
    • August 2, 2013 at 12:35 PM
      Permalink

      Hi Pratik,

      Make sure the TDS is paid/deducted by the buyer of your property if not done so far. Do not wait for any uncertain repercussion from the dpt. Speak to the buyer and ask him to file form 26QB to pay required taxes. Make sure you return the TDS amount if he incurs from his pocket.

      Reply
  • August 2, 2013 at 10:17 AM
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    I have paid One lakh in June 23rd to builder which got cleared from my Bank on 27th June so since I havent paid the TDS by July 7th & I am planning to file this in 26QB by this 7th Aug whether there will be any interest or penalty? If yes How much will be the interest we need to mention in the 26QB form while filing & also what the Fee line item next to Interest in 26QB denote? It is by default Zero. Please clarify

    Reply
    • August 2, 2013 at 12:42 PM
      Permalink

      Hi Raghav,

      I haven’t yet seen IT dpt levying any late fee for this. But I suggest you, talk to them once to avoid any future discrepancies.

      Reply
  • August 5, 2013 at 5:09 PM
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    i am purchasing underconstruction property worth 87 lacs ,seller has paid 48 lacs till date to builder in clp plan.Now i have question does dedution of tds applicable as i am going to pay seller 48 lacs by cheque /dd.Or i have to deduct tds @1% before making payment. On what amount tds is to be deducterd 48 lacs or 87 lacs.

    Reply
    • August 5, 2013 at 6:37 PM
      Permalink

      Hi Manoj,

      If Rs. 48Lacs has been paid before June 1, then 1% TDS applies to Rs. 87Lacs minus Rs. 48Lacs. If not, then TDS will be applied on the whole amount.

      Reply
  • August 13, 2013 at 7:56 PM
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    What is the penalty, if this TDS is not paid by the buyer, and who’s liable to make this payment.

    Reply
    • August 13, 2013 at 8:11 PM
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      Hi Dipesh,

      Can’t say how much will be the penalty. In case there is any information, I will update here. But yes, it’s the liability of seller’s (not buyer). Buyer have the responsibility to deduct and make the payment of TDS.

      Reply
  • September 22, 2013 at 3:31 PM
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    Hi,
    I paid TDS @1.3% by mistake. While the taxpayers counterfoil (of HDFC bank) shows the total tax paid, the Form 16b that i generated, gives credit for only 1%. Dont know where the remaining 0.3% went. It has been deducted from my account but does not appear in the form 16b. So as an example, while i paid Rs. 130 the Form 16b is only showing Rs. 100. Please suggest how i can resolve this.
    Thanks,

    Reply
    • September 22, 2013 at 5:38 PM
      Permalink

      Hi Akshay,

      I suggest you to check the transaction details from your account with the bank. Hope you will get some clarity from there.

      Reply
  • October 24, 2013 at 4:19 PM
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    My father has done all the proceedure to file TDS on property. He filled 26 QB form did his payment through net banking and generated challen. Then after 7 days he put acknoledgement no. of 26 QB in TRACES site and generated his form 16B but in form 16B ,TDS deposited column is shownig ZERO amount. What would be the reason please guide us

    Reply
    • October 25, 2013 at 4:53 PM
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      Hi Nina,

      Sometime it happens. You may check it after few days.

      Reply
  • October 30, 2013 at 4:09 PM
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    Hi ,

    Can you let me know what are included in the total value for which the TDS needs to be calculated. Do we need to include cost for village tax,power,water, club membership , Govt fees, etc.

    Reply
    • October 30, 2013 at 11:37 PM
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      Hi Jerin,

      I don’t think these charges should be included in total consideration for the purpose of TDS under the section.

      Reply
  • November 21, 2013 at 10:36 PM
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    Hi Soubhagya,
    Thanks for the wonderful information provided .I bought a property with my father as co-owner but my name is listed as the first.Can he pay the 26QB or do i have to do it?Also i do not have any bank account in india can i put my pan details and have my father pay the tax at any of the authorized banks?

    Reply
    • November 22, 2013 at 8:53 AM
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      Hi Ram,

      There is no such restrictions. You can make the payment from your father’s account.

      Reply
      • November 25, 2013 at 10:52 AM
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        Soubhagya,
        I was trying to fill up the form online then realized that my name is incorrect in the PAN card.Can i still make the payment and change the name later or should i make the changes to my name and then submit the form after the name change?

        Reply
        • November 26, 2013 at 11:38 PM
          Permalink

          Hi Ram,

          I guess you can! But I don’t think manual change of name in form will make any difference.

          If possible try to update your PAN record ASAP to avoid any future issues.

          Reply
  • November 22, 2013 at 9:49 AM
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    Thanks a lot Soubhagya,In this country of myriad tax laws you are godsend for law abiding citizens .Thanks again for your wonderful guidance.

    Reply
    • November 22, 2013 at 9:54 AM
      Permalink

      You are most welcome Ram!

      Reply
  • November 25, 2013 at 11:45 AM
    Permalink

    Hi, I have purchased an under construction house in resale. Total consideration is more than 50 lacs but original cost was less than 50 lacs. seller has paid 15 lacs before july 2013 and 20 lacs after that. Do I need to deduct TDS as amount paid to seller or builder individually will be less than 50 lacs.
    Secondly if I need to deduct TDS than on which amount- total consideration or consideration less amount paid prior to notification
    Thirdly is total cost(checking limit of 50 lacs) for TDS consists of BSP only or BSP+PLC+EDC+IFMS+car parking+electricity+ club membership
    Fourthly, from whom do i need to deduct TDS- seller or the builder
    Thanks in advance for your help

    Reply
    • November 26, 2013 at 11:50 PM
      Permalink

      Hi Nimz,

      Yes, you need to deduct TDS here for the amount to be paid to Builder (not to the seller). You can ask the builder to provide a calculation of amount (the components included) for TDS purpose. Don’t worry they will have to provide the right figure.

      Reply
  • December 15, 2013 at 11:52 AM
    Permalink

    Hi,
    I have purchased a property and already filled form 26QB. Now I have two queries.
    1) There is one seller and two purchaser, me and my wife. So I need to fill two ’26QB’ forms. When I was filling form for my wife against the seller, then I made all the TDS payment (and acquired CIN number). So when I was filling my form ’26QB’ (against the seller), I did not made any payment. So my query is is the second ’26QB’ valid, if not what should I do now.
    2) As I have filled form ’26QB’, now I want to fill 16B, but when I am registering on site ‘www.tdscpc.gov.in’ as ‘Tax Payer’, the it is asking for ‘Challan Serial Number’ in ‘Option 2’. So my query is what is the ‘Challan Serial Number’ for property TDS. I have tried 800, 280 but failed. Also please guide me how to proceed further.

    Thanks in advance.

    Reply
    • December 15, 2013 at 1:39 PM
      Permalink

      Please ignore this (above) comment by me. I could not find any ‘delete’ option here, other wise I would have delete this.
      Anybody please answer my below comment.

      Reply
  • December 15, 2013 at 1:36 PM
    Permalink

    Hi,
    I have purchased a property and already filled form 26QB. Now I have two queries.
    1) There is one seller and two purchaser, me and my wife. So I need to fill two ’26QB’ forms. When I was filling form for my wife against the seller, then I made all the TDS payment (and acquired CIN number). So when I was filling my form ’26QB’ (against the seller), I did not made any payment. So my query is is the second ’26QB’ valid, if not what should I do now? Should I fill form ’26QB’ again and make payment like Re1, or Rs 5 or 10? would this be possible?
    2) As I have filled form ’26QB’, now I want to fill 16B, but when I am registering on site ‘www.tdscpc.gov.in’ as ‘Tax Payer’, it is not receiving the inputs, it is showing the entered PAN as ‘Invalid Input’, though it is correct. I have read in above comments that for 16B is can not be generated online, you have to apply manually. Can somebody please tell how to proceed manually? Do I need to fill hard copy form 16B and send by post (destination address please)? Also as there are two purchasers, then do we need to fill two 16B form or just one containing information of both of us? Please guide me in this respect.

    Thanks in advance.

    Reply
    • December 15, 2013 at 8:07 PM
      Permalink

      Hi Harpal,

      Online form 16B is now available. You need to retry. But sorry, I could not get what exactly your 1st query is.

      Yes! in case of two buyers, you need to get two form 16B.

      Reply
      • December 15, 2013 at 11:00 PM
        Permalink

        Thanks Soubhagya for you help.

        Let me explain my first query. in our purchase of property there is one seller and two purchaser, me and my wife. So as per ‘https://www.tin-nsdl.com/TDS/TDS-FAQ.php’ guideline (FAQ: How will transactions of joint parties (more than one buyer/seller) be filed in Form 26QB?), I have filled to two ’26QB’ form, one for “me and seller”, and other for “my wife and seller”. But because of my mistake when I was filling form ’26QB’ for ‘my wife and the seller’, I paid all the TDS money (online) (and also acquired CIN number).
        And, when I was filling form ’26QB’ for ‘me and the seller’, the form filling leads me to online payment. And I did not made any payment (as I have already done). So please suggest how can I complete my filing of form ’26QB’?
        Should I fill form ’26QB’ again and make payment like Re1, or Rs 5 or 10? would this be possible?

        Reply
        • December 16, 2013 at 10:31 AM
          Permalink

          Hi Harpal,

          Yes! you are supposed to file two form 26QB because of two buyers and a seller with payment of proportionate TDS amount. Since all the TDS amount has been paid mistakenly in your wife’s name, you can not simply put any amount (whether Re. 1, Rs. 5, or Rs. 10) to generate another challan in your name. Here I suggest you to talk to or write to NSDL explaining all these issue, hope they will suggest a better solution.

          Reply
  • December 19, 2013 at 12:37 PM
    Permalink

    Hi,

    I have purchased a house property for agreement value 70 Lacs. However, property is owned by husband & wife in equal proportion. Do I need to deduct TDS as individually there consideration for the property becomes 35 lacs each which is less than 50 lacs?

    Reply
    • December 19, 2013 at 4:36 PM
      Permalink

      Hi Shekhar,

      Yes you need to deduct TDS here. Its about total consideration and the same is more than Rs. 50 Lacs in your case. It doesn’t matter whether individual share is more than or less than Rs. 50Lacs.

      Reply
  • December 28, 2013 at 3:06 PM
    Permalink

    The house is under construction. Total cost is INR 80Lakhs. 35 Lakhs paid in 2012-13. Remaining being paid in instalments starting from June 01, 2013. So 194IA is applicable.
    I need one clarification. Suppose for 2013-14 the first instalment of INR 15 lakhs is being paid on say August 01, 2013- is the TDS of 1% to be deducted only on INR15Lakhs or on INR 50Lakhs(INR 35 lakhs paid in 2012-13 and INR 15 lakhs being paid after 01 June 2013).

    Reply
    • December 28, 2013 at 3:38 PM
      Permalink

      Hi Ramkumar,

      Since the total consideration of the property is Rs. 80Lacs, you are required to deduct TDS, but only on the amount (or installment) paid or payable on or after June 1, 2013

      Reply
  • December 28, 2013 at 4:37 PM
    Permalink

    Thanks for the quick response and clarification

    Reply
    • December 28, 2013 at 5:28 PM
      Permalink

      You are most welcome Ramkumar.

      Reply
  • January 1, 2014 at 5:00 PM
    Permalink

    If i purchase a property worth 48 lacs (excluding registration charges) AND including registration charges worth will be above 50 lacs. In this case do i need to pay the 1% TDS?
    please help me in this regard.

    thanks in advance

    Reply
    • January 1, 2014 at 7:07 PM
      Permalink

      Hi Chiru,

      Any fees borne by the purchaser such as; stamp duty, registration fees or transfer fees etc shall not form a part of total consideration for TDS calculation as per the provision 194IA. In short any fee which is paid directly to the government authority is NOT included in sale consideration.

      Thus as per your case I don’t think any TDS will be levied since the total consideration is less than Rs. 50Lacs.

      Reply
      • January 6, 2014 at 11:48 AM
        Permalink

        Hi Sir,

        Thanks a lot for your information.
        now my doubts are cleared.

        thanks.

        Reply
        • January 6, 2014 at 12:01 PM
          Permalink

          Hi Chiru,

          You are most welcome!

          Reply
  • January 3, 2014 at 1:16 PM
    Permalink

    Hi,

    I have recently purchased a flat and done the part payment. At that time I was not aware of the TDS rule, hence did not deduct the tds at 1% while making the payment to the seller. Now I have discussed with the seller, and we have mutually agreed that I will bear the cost of 1% of agreement value from my pocket.

    Will this create any issue for either him or me, as there will be no deduction visible in his payment records?

    VS.

    Reply
    • January 3, 2014 at 2:33 PM
      Permalink

      Hi VS,

      It is not the matter as in offline who bears the expense/cost, but in record i.e. in form16B it should clearly reflect that you have deducted required amount of TDS for the said transaction.

      Reply
  • February 3, 2014 at 1:48 AM
    Permalink

    Hi Soubhagya,

    I have purchased a property in mine and my wife’s name. The payment is being made in installments. I have a PAN number but my wife does not — it is still being processed and is taking longer than expected. Meanwhile I need to pay TDS and provide the challan for the installment I paid in January. The builder says I can just pay using my PAN for the first installment. However, the form asks if there are multiple buyers? What should one answer there, and if I say multiple buyers, but go ahead and deduct the full TDS, do I still need to fill out another form for my wife or can I start hers only from the next installment.

    Alternatively, could I put only “single buyer” for this installment and add her for subsequent installments?

    Another question: I paid a booking amount in July 2013 for which I also need to pay TDS. Do I need to pay interest along with it as well? and how is that calculated?

    Thank you!

    Reply
    • February 3, 2014 at 10:03 AM
      Permalink

      Hi Vivek,

      I suggest you to have the TDS payment by showing joint owner. If you have applied for PAN then you can at least check the PAN number (if allotted) with the help of acknowledgement.

      Not seeing anything specifically interest being added for late payment (though it’s not advisable), but you do not delay further more and just go ahead making the payments.

      Reply
  • February 16, 2014 at 12:27 AM
    Permalink

    Hi,

    Me and my brother have entered into an agreement to sale on Dec 12, 2013 and had paid the vendor some token advance. Now we have fixed our registration date as Feb 24, 2014 where the sale deed would also be entered. In form 26QB, when I key the agreement date as Feb 24, 2014 and the payment to vendor date also as Feb 24, 2014 it doesn’t accept saying the date cannot be future date.
    Now my query is this- Should I wait till Feb 24th morning and make the remittance and then go for registration, since the sub-registrar will not accept to register unless we show the TDS payment challan. Or should I key the date of agreement and date of payment to vendor as Dec 12, 2013 and make the TDS dating the current date.
    Appreciate if you could help me on this.
    Thanks,
    Hitesh

    Reply
    • February 16, 2014 at 8:57 AM
      Permalink

      Hi Hitesh,

      You can enter the booking date instead i.e. your date of agreement.

      Reply
  • February 19, 2014 at 4:59 PM
    Permalink

    Hi, my sale agreement value is 75 lakhs. But sale deed value is 48 lakhs. Do I still need to pay 1% TDS?

    Reply
    • February 19, 2014 at 10:27 PM
      Permalink

      Hi Abhik,

      This is what you pay to the seller as a final value for buying the property. If it crosses Rs. 50Lacs then apply TDS else not. Your scenario looks bit confusing 🙂

      Reply
      • February 20, 2014 at 1:55 PM
        Permalink

        Hi Soubhagya, Thanks for the reply. The story is like this: I am actually paying the builder 75 lakhs @ Rs 3900/sft (and this is the value that is registered in the sale agreement). However the guidance value of Karnataka government is 48 lakhs @ Rs 2850/sft. We are registering the property @ 48 lakhs (lower than the value we are actually paying to the builder) to reduce the cost of stamp duty+registration.
        Now the builder is saying that 1% TDS need not be paid as sale deed value50 lakhs. I am in a big fix 🙁

        Reply
        • February 20, 2014 at 2:24 PM
          Permalink

          Hi Abhik,

          I think there is no escape. You have to pay TDS on Rs. 75Lacs. It can not be considered as Rs. 48Lacs.

          Reply
  • February 23, 2014 at 10:21 PM
    Permalink

    SIR
    I intend to purchase a flat for Rs.65 lakhs , the cost of UDS to be registered is Rs.30 lakhs and the cost of construction is Rs.35 lakhs for which i am going to enter into separate agreement with the builder. The cost of uds will go to the owner of the land and the cost of construction will go to builder. In this connection pl clarify whether i have to deduct tds for 65 lakhs as I am paying Rs.30 lakhs only to purchase the land and remaining amount is payable for development only (ONLY CONSTRUCTION AGREEMENT IS REGISTERED FOR THIS PURPOSE)

    Reply
    • February 24, 2014 at 6:25 PM
      Permalink

      Hi Rangarajan,

      Basis my interpretation, you are required to pay TDS at 1%. The property value that you are going to buy is Rs. 65Lacs i.e. more than Rs. 50Lacs.Thus files TDS twice. One for the land owner and rest for construction.

      Reply
  • February 24, 2014 at 7:37 PM
    Permalink

    I have to pay TDS on sale on property which I bought.
    I have paid installment for under construction property.
    I am suppose to pay it in the month of oct 2013 I did not know at that time about TDS? Do I have to pay interest?

    With TDS 1 % do i have to pay Education cess + surcharge?
    Thank a lot
    regards

    Reply
    • February 24, 2014 at 8:27 PM
      Permalink

      Hi Mini,

      Yes interest for late payment may applicable. I can’t confirm how much, but at least you go ahead (without further delay) and make the TDS (i.e. 1%) payment asap. Fyi, there no Education cess & Surcharge applicable to this provision.

      Reply
  • March 5, 2014 at 11:56 PM
    Permalink

    Hi Soubhagya ,

    I did sale agreement on 8th APR 2013 for a 70Lakh property and paid 70 Lakh on 31.05.2013. My sale deed was done on 6th June 2013. In this case do I need to pay 1% TDS?

    Thanks in advance!
    Ritesh

    Reply
    • March 6, 2014 at 11:33 AM
      Permalink

      Hi Ritesh,

      If all the payments have already been done before June 1, 2013 then no TDS required to be deducted further. Cheers!

      Reply
  • April 16, 2014 at 7:28 PM
    Permalink

    I bought a Floor (under construction) in resale – for sale consideration of 49 lakh excluding IFMS charges and service tax paid by vendor in Feb 2014.

    At that time I paid 48.09 lakh to vendor (including 31,000 for service tax paid by him on payments) & I was supposed to pay 1.69 (including IFMS charges) to builder at the time of possession.

    Now i got letter from builder to pay 1.98 lakh (including IFMS Charges of 46,000 + meter charges of 25,000 + service tax of 4,500).
    My question is although sale consideration was 49 lakh but now total payments will be:
    To vendor – 48.09 lakh
    To Builder – 1.98 lakh
    Total — 50.07 lakh

    Am I suppose to deduct TDS while I make payment to builder which is due in 3-4 days?
    Will builder agrees to this (because for him this deal was at origional price of approx.
    30 lakh to origional allotee)?

    Please advise on urgent basis. Thanks a lot.

    Reply
    • April 16, 2014 at 11:26 PM
      Permalink

      Better deduct TDS

      Reply
  • April 29, 2014 at 10:33 AM
    Permalink

    Hi Sir,

    I have bought a house for 51 lakhs. I have paid 8 lakhs before June 1 2013. The remaining
    i am getting it as loan from LIC. Now should i pay 1% tax for 43 lakhs or for 51 lakhs. Please confirm.
    Also after paying can i manually fill the 16B form to be provided to the seller.

    Reply
  • May 9, 2014 at 10:16 AM
    Permalink

    We purchased a re-sale flat jointly in the name of my wife and mother for a consideration of EXACTLY Rs.50 lakhs. Will TDS be applicable in this case too?

    Reply
    • May 11, 2014 at 11:11 AM
      Permalink

      Hi Govind,

      Provision u/s 194IA says, no TDS is applicable if total consideration is less than Rs. fifty lacs (i.e. not upto), this indirectly indicates consideration amount of Rs. fifty lacs has to be charged with TDS of 1% as per the said section.

      Reply
  • June 26, 2014 at 4:32 PM
    Permalink

    Hi Mr.S.K.Patra,

    I have submitted form26QB through online… but payment submitted in offline….

    the acknowlegement is in my hand but I dont know In which bank i can pay the tax amount , I went to pay in SBI they said they dont accept

    Reply
    • June 27, 2014 at 8:03 AM
      Permalink

      Hi Swathi,

      SBI very accepts such payments. I suggest you to visit any other branch or bank to make the payment.

      Reply
  • September 5, 2014 at 10:45 AM
    Permalink

    Hi,
    Let me first of all many thanks and congratulations for sharing such wonder ful information, sincerely appreciate it. I have couple of questions as

    1. I had booked one appt in Jan 2010 and paid about 20 L between booting time till May 13 and further have paid about 27 L between June 13 till date. So i understand TDS will be applicable on 27 L which has been paid after June 13, pls confirm.
    2. Actual cost as mentioned in buyer-seller agreement is 39L (BSP) + PLC + Car Parking + IDC + EDC which is just lesser than 50 L. But if we add service tax then over all consideration cost becomes about 51L, so this is very tricky situation. So request your guidance if do i need to include ST while taking the over all consideration.

    Pls guide, many thanks Deepak Grover

    Reply
    • September 7, 2014 at 6:07 PM
      Permalink

      Hi Deepak,

      Find answers in sequence to your queries;
      1. Yes! You are right
      2. What I am seeing, the ST is included. But this is not fair. Can’t confirm when clear notification comes pertaining to this provision.

      Reply
  • September 29, 2014 at 1:57 PM
    Permalink

    Hi Soubhagya
    I have booked flat and first installment of 11lakhs have been disbursed by bank.
    I have also made down payment of 10 lakhs.Registration value of the property is 50.35 and registration is done in Aug’14. Kindly let me know by when i should make payment of TDS. Can I make payment after the complete loan disursement or need to pay now.

    Reply
    • October 1, 2014 at 9:44 PM
      Permalink

      Hi Ravi,

      You are supposed to deduct TDS on every installment. Better deposit taxes as early as possible.

      Reply
  • December 15, 2014 at 5:57 PM
    Permalink

    Hi,

    I have purchased a property jointly owned by me and my wife there are few queries that I have noted below:

    1) I have opted for subvention scheme as as of now we are making payment of 80% including (bank loan and self funding) so do we need to do TDS payment on whole 80% ?
    2) As the property is jointly owned so do we need to submit TDS twice by both of us ?
    3) How is the ratio of ownership defined ?
    4) Can i pay the complete TDS myself?

    Thanks in anticipation.
    Tushar

    Reply
    • December 16, 2014 at 10:33 PM
      Permalink

      Hi Tushar,

      Find answers below;
      1. Yes
      2. Yes
      3. This is upto you. But for the purpose of TDS, you can consider the ratio as per share of each contributions and how the loan repayments are going to be served.
      4. Refer above answer.

      Reply
  • December 16, 2014 at 7:43 PM
    Permalink

    Hi,

    I have purchased a property (total property cost 62L ) jointly (along with my husband); We have paid the 10% booking amount in 2 installments on (18th Nov and 2nd Dec respectively also the 70% loan is also being disbursed on 16th Nov.

    Now for filling the TDS
    1) should I fill the TDS 6 times ( 3 dates * 2 buyers) ?
    2) should I fill the TDS twice (myself and my husband ) and if yes than what will be entered in “Date of Payment/Credit” text box in the Form 26QB ?
    3) Can I fill the TDS single time myself (In that case what will be entered in “Date of Payment/Credit” textbox in the Form 26QB) ?

    Please suggest as I am really confused on the same.

    Regards
    Mishika

    Reply
    • December 16, 2014 at 10:13 PM
      Permalink

      Hi Mishika,

      As per the rule, you should follow the process as you have mentioned in point 1. But do not wait much as your November payment’s TDS is already delayed to approx. a month.

      Reply
  • February 17, 2015 at 7:17 PM
    Permalink

    Hi,
    I purchased a property on 29th April, 2012 for Rs. 52 lac. Now, I came to know that I need to pay 1% TDS to govt. which I did not pay till date. Pls note that After June 2013, I have made 4 payments to my builder as per below details:
    4th July, 2013: Rs. 2,69,561.00
    13th Oct, 2013: Rs. 2,69,561.00
    14th March, 2014: Rs. 2,69,561.00
    21st May, 2014: Rs. 2,69,561.00
    Pls advise how do I calculate Interest & fee to be paid over and above 1% TDS.

    Reply
  • March 23, 2015 at 3:13 PM
    Permalink

    Hello,

    Hope you are doing good!
    I bought a property in chennai and it was registered in Oct 2013. Cost of it was 52.75 L (including Car Parking, EB, registration and etc.,) Had withheld 1% while making the payment to Seller. Do i need to fill out the 26QB and provide other required details. Please let me know how to compute the interest and Fee.

    Thanks in advance!

    Reply
    • April 5, 2015 at 11:08 PM
      Permalink

      Hi Ram,

      Sorry for late reply!

      Yes you should. Do not delay much else you have to pay interest and penalty for late TDS deposit.

      Reply
      • April 21, 2015 at 11:26 AM
        Permalink

        Dear Soubhagya Kumar,

        I bought a property in chennai and it was registered in Oct 2013. Cost of it was 52.5 L (including Car Parking, EB, registration and etc.,). I paid 3 lakhs on Apr 2013 and another part payment on Sep 2013. Also Bank paid majority of amount in Sep 2013 to builder but haven’t withheld 1% while making the payment to Builder. While talking to Builder now – he is not agreeing to return 1% tax amount and we have proof that we paid all amount to builder. Could you pls advise on the same on how to go about it?

        Thank you in advance!

        Reply
  • April 20, 2015 at 5:00 PM
    Permalink

    Hi Soubhagya Kumar:

    Have a quick question..

    I bought a property in chennai and it was registered in Oct 2013. Cost of it was 52.5 L (including Car Parking, EB, registration and etc.,). I have paid 5 Lakhs 0n Apr 2013 and remaining amount on Sep 2013. Bank also paid 75% on Oct 2013. Bank and I haven’t withheld 1% while making the payment to Seller. Talking to Builder they aren’t ready to pay that amount. Could you pls advise how to handle this situation?.

    Thank You in advance!
    Kumar

    Reply
  • April 20, 2015 at 6:11 PM
    Permalink

    Hello,

    I bought a property in chennai and it was registered in Oct 2013. Cost of it was 52.5 L (including Car Parking, EB, registration and etc.,). I paid 3 lakhs on Apr 2013 and another part payment on Sep 2013. Also Bank paid majority of amount in Sep 2013 to builder but haven’t withheld 1% while making the payment to Builder. While talking to Builder now – he is not agreeing to return 1% tax amount and we have proof that we paid all amount to builder. Could you pls advise on the same on how to go about it?

    Thank you in advance!

    Reply
  • April 21, 2015 at 11:28 AM
    Permalink

    Dear Soubhagya Kumar

    I bought a property in chennai and it was registered in Oct 2013. Cost of it was 52.5 L (including Car Parking, EB, registration and etc.,). I paid 3 lakhs on Apr 2013 and another part payment on Sep 2013. Also Bank paid majority of amount in Sep 2013 to builder but haven’t withheld 1% while making the payment to Builder. While talking to Builder now – he is not agreeing to return 1% tax amount and we have proof that we paid all amount to builder. Could you pls advise on the same on how to go about it?

    Thank you in advance!

    Reply
    • April 22, 2015 at 10:45 PM
      Permalink

      Hi Kumar,

      I can understand your plight. Unfortunately you can not do anything if builder is not supporting. Just hope you don’t get any notice from Income Tax Dept for not deduction of tax. In case you get any such letter then meet tax officer and explain that you were unaware of the facts and request to take the issue leniently. Since this provision is not very old, thus there is a chance that you can get some relief.

      Reply
  • April 24, 2015 at 2:44 PM
    Permalink

    Hi,

    I am in the same situation as few of the last buyers. Let me explain mine. My house is 54 lakhs. I paid 20% upfront. And took 70% as loan. The super structure of the building was complete and they started on the wall. The loan was sanctioned and the first demand letter came. The bank disbursed the entire amount and I was not aware of this TDS rule. Now the second demand letter was raised, when my bank gave me a form to complete, where I noticed the TDS rule. Kindly clarify how should I go about paying the TDS. This second demand letter has not been paid, so can I detect this TDS for the first and second from this? Also should I pay TDS for the initial 20% that I paid?
    Thanks

    Reply
    • April 24, 2015 at 10:33 PM
      Permalink

      Hi Arvindakshan,

      Yes, you should deduct those unpaid TDS as well. With regards to 20% amount already paid; please note if the amount was paid before June 1, 2013 then no need to levy TDS and if it was after June 1, 2013 then you should retain 1% as TDS for this amount as well.

      Reply
      • June 10, 2015 at 11:52 PM
        Permalink

        I have purchased under construction property from a national level builder.Last Payment of 3 lac given by me in June 2013 and no 1% tds deducted by me as I thought only 49 lac due after june 13 so tds provision is not applicable IN MY CASE.Total value of property is 70 lac.Now what to do ?

        Reply
  • April 29, 2015 at 11:24 PM
    Permalink

    I have paid 11 laks as booking amount without deducting TDS, was not told.

    Now I have to pay 1% tds to govt by when?
    How to adjust this from future payments to builder?
    Under subvention scheme, loan giver will deduct tds or should i? the builder will receive amounts directly from finance company.

    Thanks

    DP

    Reply
    • June 16, 2015 at 8:48 PM
      Permalink

      Hi Punwani,

      1% of 11Lakhs you can pay now. And adjust the same with future payments. Under loan scheme bank will ask you the proof of tax payment and then only it will release the money to builder.

      Reply
  • May 1, 2015 at 8:47 PM
    Permalink

    Hi, I had booked an apartment in Nov 2013. I had paid 20% booking amount without deducting TDS amount. There was some project approval problem with the builder. Now, the approvals are in place. Now, the installments have started. i decided to pay the TDS amount for 20% booking amount. What “date of Tax deduction” i need to enter while paying TDS ?

    Reply
    • June 16, 2015 at 8:23 PM
      Permalink

      Hi Sumanth,

      Better make it at present date as you had not deducted in actual during Nov 2013.

      Reply
  • May 3, 2015 at 3:00 PM
    Permalink

    Hi,

    I have bought a property for 54.7 lacs in December, 2012 and have been paying installments to the builder since then. As I was not aware of the TDS deduction for the payments to the builder and remitting the same to the government, I have not filed any TDS till now. Can you please guide me how to approach this?

    Thanks in advance

    Reply
    • June 16, 2015 at 8:17 PM
      Permalink

      Hi Manish,

      If some installments are still left then before releasing then just figure out how much you have paid after June 1, 2013 till date then calculate 1% on the amount paid and pay the same under form 26QB. Also follow this with all future payments. Whatever amount of TDS you pay, ensure you adjust the same from future payments.

      Reply
  • June 10, 2015 at 11:55 PM
    Permalink

    Now in may 2015 next installment of 3 lac due.Can I deduct 1% of both and deposit .

    Reply
    • June 12, 2015 at 1:22 PM
      Permalink

      Hi Dev,

      Yes! you can deduct TDS for both the amounts. Do not delay much.

      Reply

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