About a month back I had posted a blog 'Get ready to deduct TDS when you buy a property' detailing some of the key provisions related to the captioned matter.
Briefly, henceforth whenever you buy any property (other than agricultural land) valued more than Rs.50 lakhs, you have to deduct 1% from the amount payable to the seller as Tax Deducted at Source (TDS) and deposit the same with the Govt.
Now, detailed below, is the procedure that you have to follow in this regard.
1. The TDS deducted while making the payment to the seller, must be deposited with the Govt. within 7 days from the end of the month in which you make this deduction.
2. This payment to the Govt. must be made alongwith a new challan-cum-statement viz. Form 26QB.
3. Furthermore, this payment should preferably be done electronically (or by visiting the authorized bank branches).
4. Within 15 days of making the TDS payment to the Govt. you must issue Form 16B to the seller (like your employer gives you Form 16 for the TDS he deducts from your salary).
5. As mentioned in my aforesaid blog, the usual provision that the tax deductor should have a TAN No., has been dispensed with in TDS-on-property transactions. However, seller's PAN No. is very important. In the absence of seller's PAN No. the TDS deducted has to be 20%.
You have to visit the website Tax Information Network of Income Tax Department for the same.
Briefly, henceforth whenever you buy any property (other than agricultural land) valued more than Rs.50 lakhs, you have to deduct 1% from the amount payable to the seller as Tax Deducted at Source (TDS) and deposit the same with the Govt.
Now, detailed below, is the procedure that you have to follow in this regard.
1. The TDS deducted while making the payment to the seller, must be deposited with the Govt. within 7 days from the end of the month in which you make this deduction.
2. This payment to the Govt. must be made alongwith a new challan-cum-statement viz. Form 26QB.
3. Furthermore, this payment should preferably be done electronically (or by visiting the authorized bank branches).
4. Within 15 days of making the TDS payment to the Govt. you must issue Form 16B to the seller (like your employer gives you Form 16 for the TDS he deducts from your salary).
5. As mentioned in my aforesaid blog, the usual provision that the tax deductor should have a TAN No., has been dispensed with in TDS-on-property transactions. However, seller's PAN No. is very important. In the absence of seller's PAN No. the TDS deducted has to be 20%.
You have to visit the website Tax Information Network of Income Tax Department for the same.