In today’s world, people buy and sell various properties in India with respect to taxes. In the same way, TDS is a system introduced by the Indian government. It is termed “Tax Deducted at Source”, which is 1% applied when you purchase immovable land or property that is worth fifty lakhs. This kind of tax comes under India’s Income Tax Act.
The one percent is deducted from the buyer and deposited to the government on behalf of the one who pays the tax. In fact, the major purpose of TDS is to reduce evasion of tax, share the tax payment responsibility, and make sure there are regular tax payments without dues. Let’s dive in deeper to understand how to pay TDS on the purchase of property, keep reading the content below.
How to Pay TDS on Purchase of Property
You must pay the TDS via the e-filing website by filling out a 26QB form, which is made especially for property transactions. The required credentials to pay TDS are sale value, buyer PAN, property proofs, and more.
The application process will guide you to select your preferred net banking method for payment. After the successful payment, you can download the receipt form to maintain your records. Therefore, to pay TDS on the purchase of property, the above-mentioned details are necessary to collect.
When Is TDS Applicable on Property Purchase?
Paying TDS on the purchase of property is a legal process initiated by the Indian Income Tax Act. Generally, the application of TDS occurs when the property purchase exceeds fifty lakhs. There is only one percentage of TDS for 50 lakhs, but when it exceeds the TDS increases. In fact, agricultural land doesn’t come under this category, which is an exemption from paying tax. The TDS is applied to the following sections.
- No sale PAN or Buyer PAN: If the seller and buyer don’t have PAN, they must be deducted twenty percent of tax.
- Property Type: The property must be commercial or residential land because TDS is applicable only for immovable property. This doesn’t include agricultural or farming lands.
- Value of Transaction: TDS is only applicable when the value of the immovable property is fifty lakhs or above.
Step-by-Step Process to Pay TDS Online
To ensure the smooth transaction process for TDS, the below-mentioned steps are necessary to follow.
Step 1: Register on the “e-filing” website. It navigates you to the e-filing portal to find an e-file.
Step 2: Go to the e-file section, which navigates you to the e-pay tax webpage to initiate a new payment. Select the 26QB tab to find the 26QB form.
Step 3: Fill the 26QB form with the buyer’s details, where the portal sometimes fills your details automatically. Click continue for further processing.
Step 4: You have to fill the seller’s PAN correctly without any error. Make sure to check twice after entering.
Step 5: In the category of property details, fill in the residential address, sale details, property type, agreement date, and more. The tax deducted at source payment will be automatically calculated with the help of provided details.
Step 6: Navigate to the payment and make sure you fill out and click the right billing option. Select the preferred transaction method to end up with a successful payment. After this process, you can download the receipt for future reference. In fact, it is also important to maintain your transaction records.
Benefits of Paying TDS Online
Easy Record Maintenance
Online payments are easy to manage because they instantly generate and allow you to download a receipt. The likelihood of missing a paper challan is high. In fact, it also has high automatic tracking, which has payment history and present records for future reference.
Accuracy and Automated Forms
The online TDS application is auto-filled. which reduces manual errors. To add on, there are automated verification and validation checks for buyer and seller PAN. Here’s how the technology has grown to maintain accuracy and verification in online forms.
Quick Processing
The manual filling process is more time-consuming, while the online TDS application offers real-time acknowledgement and faster form processing. Indeed, the funds are transacted faster, which reduces any lapses. Therefore, an online TDS application provides instant and real-time proof of the payment transaction.
Convenience
The online TDS payment transaction is available 24/7, which you will not get with an offline application. The digital TDS payment expands its access and so it is the best choice for beginners. Therefore, without visiting banks or government offices, you can access online TDS payment right from your place.
Key Points Regarding Pay TDS Online on Property in India
TDS property Online application
As tax withdrawn at source comes under the Income Tax Act to be filled out, the tax is implemented if the property value exceeds. The buyer takes the charge and duty of deducting and depositing tax deducted at the source.
Online Documents Requirements
The property details and proofs are necessary to submit an online TDS payment. The PAN details of both sellers and buyers are essential for TDS. If the documents are missing, then the deduction percentage will be increased.
Fill the 26QB Online form
Submitting only one form is enough for both buyer and seller collaborations. This form is instructed to be filled out within thirty days from the date of tax payment.
TDS Online certificate
The 16B form certificate is what the buyers must download from the portal for record maintenance. It is important to register on the TRACES portal as per instruction after the TDS online payment.
Conclusion
Under Section 194-IA, the Income Tax Act has rolled out TDS on the purchase of unyielding property. Both the buyer and seller must undergo these processes to apply for the TDS online. The whole procedure is streamlined online for simple accessibility and convenience.
When the buyer fails to submit any important documents, the TDS increases or decreases. Moreover, the buyer and seller will both receive the TDS receipt and certificate online for future reference. Are you still doubting how to pay TDS on purchased property? Never mind; here is your quick solution: pay TDS online through an e-filing portal. Pave the way for timely withdrawals on TDS and enhance your property purchase to run smoothly with legal compliance.
Apoorva H P Achar