TDS is applicable on sale of immovable property as per Finance Bill of 2013. Where the sale consideration of property is equal or exceeds to Rs. 50,00,000.
According to Sec 194 IA, the Income Tax Act, 1961 TDS is applicable from from June 1, 2013 for sale of property exceeding Rs 50 lacs. At the time of making payment of sale consideration, Tax @ 1% should be deducted by the purchaser of the property.
Payment of TAX
- Payment of Tax can be made by e-Tax payment option, available at NSDL through any of the authorized bank branches. Tax so deducted should be deposited to the Government Account.
E-payment
- E-Payment facilitates payment of taxes online by taxpayers.
Pre-requisite
- Purchaser of property can deposit Tax with any authorized bank with net-banking account option.
- For list of authorized banks, please refer.
Also read how to save income tax on sale of property
https://onlineservices.tin.egov-nsdl.com/etaxnew/Authorizedbanks.html
Steps to pay Income Tax online
- Log on to NSDL-TIN website (www.tin-nsdl.com).
- Under TDS on sale of property, click on the option “ Online form for furnishing TDS on property”.
- Select form for Payment of TDS on purchase of property. Click the option “TDS” on sale of property.
- Select Financial Year from the drop down for which payment is to be done.
- Select Tax applicable for which payment is to be done.
- Mention PAN of Transferee/Buyer (Don’t have PAN visit here to, Apply for new PAN).
- Mention PAN of Transferor/Seller.
- Re-enter PAN of Transferee/Buyer.
- Re-enter PAN of Transferor/Seller.
Also read How to verify PAN number
- Provide Complete address of Transferee/Buyer.
- Provide Complete address of Transferor/Seller.
- Provide Complete address of Property transferred.
- Mention the date of Agreement/Booking of property.
- Mention the Total value of consideration (Property Value).
- Mention if the above payment is done in Lump sum or in Installments.
- Please select the amount paid/credited (Enter the amount paid to the Transferor/Seller).
- Please enter the TDS rate (Tax rate at which the TDS was deducted by the purchaser at the time of purchase of the property).
- Please enter the TDS amount to be paid (amount deducted by the purchaser at the time of purchase of the property).
- On proceed, confirmation page is displayed to verify the details entered.
- In case you have made a mistake in data entry, click on “EDIT” to correct the same.
- On confirmation, nine digit alpha numeric Acknowledgment number would be generated.
- To do the required TDS payment, please click on ‘Submit to the Bank’ button.
- On clicking on Submit to the Bank, deductor will have to log in to the net-banking site with the user ID/ password provided by the bank for net-banking purpose.
- On confirmation, nine digit alpha numeric Acknowledgment number would be generated.
- To do the required TDS payment, please click on ‘Submit to the Bank’ button.
- With the user ID/ password provided by the bank for net-banking purpose, the detector will have to login to the net-banking site on clicking on Submit to the Bank.
- Enter payment details at the bank site, on successful login.
- The bank name through which e-payment has been made; payment details and containing CIN will be displayed on successful payment a challan counterfoil.
Watch more tax Planning videos
Points to remember while depositing Tax online
- From the sale consideration of property deduct tax @ 1%.
- In the online Form for furnishing information regarding the sale transaction, PAN of Seller as well as Purchaser should be mandatory furnished.
- In quoting the PAN or other details in the online form do not commit any error as there is no mechanism for rectification of errors. You are required to contact Income Tax Department for the further purpose of rectification.
- Field marked with * are mandatory.
- In any of the fields do not enter double quotes (“ ”).
In case of any further queries/concerns please contact TIN Call Center at 020-27218080 or email at tininfo@nsdl.co.in