Make the TDS Payment on the Purchase of Property

Make the TDS Payment on the Purchase of Property with us, starts at just Rs. 2499/-* Now to get started Pay Just Rs. 299/- , and the rest will be pay conveniently after processing begins.

100% Online Process

Hassle Free Process

EMI Available

CA / CS Services

Free Consultation

24 x 7 Assistance

H & G Ebiz Private Limited

5.0

review us on

All about TDS payment on Purchase of Immovable Property

What is TDS on immovable property?

The Finance Bill 2013 has proposed that purchaser of an immovable property (other than rural agricultural land) worth INR 50 lakh or more is required to pay withholding tax at the rate of 1% in form 26QB from the consideration payable to a resident transferor.

Whenever there is a transaction of any sum for the purpose of transfer of ownership of an immovable property like a building, a part of a building or land other than agricultural land, then the buyer in the said transaction is liable to pay Tax Deducted at Source according to Section 194-IA. In simple words, when someone buys a property from a seller, then they’re liable to pay a tax on it if the cost of the property is more than Rs. 50 lakh.

Penalty on non-payment of TDS on immovable property:

What is form 26QB?

Form 26QB is a form to make an online payment of TDS from the e-tax payment option.

Form 26QB is required to be filed by the buyer online.

PAN of the buyer and seller, details of the property, total consideration payable, and payment details must be furnished in the said form.

The Due Date for Payment of TDS on form 26Q:

The due date of payment of TDS on transfer of immovable property is 30 days from end of the month in which the deduction is made.

Late filing fees for late TDS Payment for purchase of immovable property:

In case of default of non-filing or late filing of Form 26QB, a penal fee is applicable under section 234E of the income tax act.

Rs. 200 has to be paid for every day during which such failure continues.

The buyer would also be liable for defaults of late Deduction, late payment, and interest thereon.

Penalty on non-payment of TDS on immovable property:

Assessing Officer may levy penalty under section 271H at his discretion.

This section is applicable when a statement as required by the tax laws is not submitted timely.

The penalty under this section must be more than Rs 10,000 and can extend to Rs 1lakh.

However, if TDS is deposited with fee & interest and the statement is submitted within 1 year of the time prescribed, no penalty shall be levied.

Penalty on non-payment of TDS on immovable property:

Assessing Officer may levy penalty under section 271H at his discretion.

This section is applicable when a statement as required by the tax laws is not submitted timely.

The penalty under this section must be more than Rs 10,000 and can extend to Rs 1lakh.

However, if TDS is deposited with fee & interest and the statement is submitted within 1 year of the time prescribed, no penalty shall be levied.

Important notes for Form 26QB filing:

The tax rate for property purchase is 1% of the total sale amount if the purchaser furnishes his and the seller’s Permanent Account Number (PAN).

However, if the purchaser does not furnish their PAN, then the rate of TDS shall be 20% of the sale amount.

If the purchase was made between the 14th of May 2020 to 31st of March 2020 then the TDS Payment shall be made at the rate of 0.75%.

No tax is applicable if the property sale is less than INR 50 lakh.

Why choose H & G EBIZ PRIVATE LIMITED as your service provider for making your TDS Payment online on the purchase of immovable property?

www.hngebiz.com is an eminent business platform and a progressive concept. It helps in the end-to-end incorporation, compliance, advisory, and management consultancy services to clients in India and abroad. The process of Private Limited Company incorporation & registration is easy, cheap and quick at H & G EBIZ PRIVATE LIMITED . www.hngebiz.com also provides services such as Income tax Return filing, TDS return filing, GST return filing. H & G EBIZ PRIVATE LIMITED also provides Partnership Registration, HUF, LLP Incorporation and One Person Company registration and Secretarial Compliance Services. You may get in touch with our compliance manager on 91 76008 05842 or email info@hngebiz.com for free consultation.

Mandatory norms for TDS Payment for the purchase Immovable Property

The TDS payment is to be made by the buyer and not the seller.

The buyer has to deduct TDS at 1% of the total sale consideration.

TDS is required to be paid only if the consideration is more than 50 lakhs

If the payment is made on installments, then TDS has to be deducted on each installment paid.

On property purchased on or after 1st September, 2019, the Consideration for immovable property shall include, all charges of the nature of club membership fee, car parking fee, electricity or water facility fee, maintenance fee, advance fee or any other charges of similar nature, which are incidental to the transfer of the immovable property.

The buyer of any immovable property can make the payment using your PAN.

For the purpose of making payment of TDS on immovable property, the buyer has to obtain the PAN of the seller.

The TDS on immovable property has to be paid using Form 26QB within 30 days from the end of the month in which TDS was deducted.

After depositing TDS to the government, the buyer is required to furnish the TDS certificate in form 16B to the seller. This is available around 10-15 days after depositing the TDS.

Documents required for TDS Payment online in Form 26QB

Document Checklist

Full names of buyer and purchaser

PAN of the buyer

PAN of the seller

Details of the Transaction

Address of the transferor and transferee

Address of the property purchased

FEES for filing Form 26Q (TDS on purchase of property)

Standard

2499

Filing of Form 26QB

Buy

Process to payment online for purchasing Immovable property

+91 76008 05842 +91 76007 97648

Call us for best solution