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Tds on property

Rachit (Analyst) (913 Points)

02 August 2013

Sec 194-IA requires purchaser of an immovable property (other than rural agricultural land) worth Rs 50 lakh or more, to deduct TDS at the rate of 1% from the consideration payable to / seller / transferor.

Form 16B is the TDS certificate to be issued by the deductor (Buyer of property) to the deductee (Seller of property) in respect of the taxes deducted and deposited into the Government Account..

Buyer or Purchaser of the property is not required to procure Tax Deduction Account Number (TAN).

Form 16B is required to be downloaded from the website of Centralized Processing Cell of TDS (CPC-TDS) www.tdscpc.gov.in.

Does anyone know the procedure of downloading this Form 16B from TRACES PORTAL?

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15 Replies

Nayagam (Chartered Accountant) (134 Points)
Replied 03 August 2013

The payment of TDS has to be made in Form 26QB with particulars of buyer, seller and property details TDS payment can be made only online.

Mihir (Wealth Manager) (5293 Points)
Replied 03 August 2013

After making online payment using fomr 26QB, you can download form 16B from traces.

I have additional question here. What if a flat sold for 95 lacs has two owners?

Himanshu Gupta (Article) (37 Points)
Replied 10 August 2013

IF THE BUYER DOESN'T DEDUCT TDS ON PAYMENT......WHO WOULD LIABLE BUYER/SELLER

(Guest)

Learn How to Download Form 16B tds certificate on sale of property From Traces

https://www.chdcaprofessionals.com/2013/08/proceduretodownloadform16bfromtraces.html

1 Like

CA Nitin Kumar (Accounts and Audit Manager) (26 Points)
Replied 17 August 2013

in my case, buyer has not paid any tax through a challan and neither any TDS has deducted.

please suggest me how to register the person by which TDS has deducted?

and how to download Form 16 B

Mihir (Wealth Manager) (5293 Points)
Replied 17 August 2013

It is necessary to incorporate a clause within the sale agreement to make the buyer liable to deduct TDS, deposit TDS and also furnish form 16B to the seller within a reasonable period of time. Adding a penalty onto the buyer for failing to comply is also important.

CA Nitin Kumar (Accounts and Audit Manager) (26 Points)
Replied 17 August 2013

Till date Registration possible only if buyer has paid tax through challan period onwards

A/Y 2008-09 to A/Y 2013-14 or tds of buyer has been deducted From 1 Apr 2011 onwards.

if buyer has not paid any tax through challan period onwards A/Y 2008-09 to A/Y 2013-14 and no tds of buyer has been deducted From 1 Apr 2011 onwards.

now in this case how to register the person on TRACES

(Guest)

Originally posted by : CA Nitin Kumar
	Till date Registration possible only if buyer has paid tax through challan period onwards A/Y 2008-09 to A/Y 2013-14 or tds of buyer has been deducted From 1 Apr 2011 onwards. if buyer has not paid any tax through challan period onwards A/Y 2008-09 to A/Y 2013-14 and no tds of buyer has been deducted From 1 Apr 2011 onwards. now in this case how to register the person on TRACES

Now A/Y 2014-15 has been added for payment through challan . its not possible as of now.alternatively pay nominal amount of tax for a/y 2014-15 . then u can register.

Sanjay Chitnis (Service) (53 Points)
Replied 19 August 2013

I have a question on WHEN the TDS has to be deposited.I paid some advance at the time of agreement for sale, and deducted and deposited TDS on that.

Now we are going for sale deed and I will be paying remaining amount at the time of registration after deducting TDS. Now the question is should I deposit TDS before the sale agreement or is it OK to deposit within 7 days after it has been deducted.

Sanjay

(Guest)

Originally posted by : Sanjay Chitnis
	I have a question on WHEN the TDS has to be deposited.I paid some advance at the time of agreement for sale, and deducted and deposited TDS on that. Now we are going for sale deed and I will be paying remaining amount at the time of registration after deducting TDS. Now the question is should I deposit TDS before the sale agreement or is it OK to deposit within 7 days after it has been deducted. Sanjay

As per law , it is OK to deposit within 7 days of next month after it has been deducted in previous month. As per recent article in times of india , they said it is mandatory to deposit tds before registartion of property.But it no where mentioned in law.it is only for convience of government that tds has been deducted on property before registering property for early detection of tax evasion.

Go by your choice. If u can deposit tds before registartion , deposit tds and issue form 16b . or after payment at time of registartion deposit tds with in 7 days of next month.

Both cases are arguable.

1 Like

(Guest)

PASSWORD TO OPEN FORM 16B TDS CERTIFICATE IS DOB OF BUYER IN DDMMYYYY FORMAT.

1 Like

Sanjay Chitnis (Service) (53 Points)
Replied 23 August 2013

Thanks for your clarifications. Finally I paid the TDS amount before the sale deed and mentioned the details in the sale deed itself along with the other payment details.

Now I have another problem. I missed taking down the acknowledgement number which comes BEFORE we are directed to the Banks's payment gateway. This number is mandatory to download form 16B! Is there a way to get this acknowledgement number or a way to get form B without the acknowledgement number? BTW, nowhere in the FAQ they mention note down this number which is must to download form B :-( !

Sanjay

(Guest)

Originally posted by : Sanjay Chitnis

Thanks for your clarifications. Finally I paid the TDS amount before the sale deed and mentioned the details in the sale deed itself along with the other payment details.

Now I have another problem. I missed taking down the acknowledgement number which comes BEFORE we are directed to the Banks's payment gateway. This number is mandatory to download form 16B! Is there a way to get this acknowledgement number or a way to get form B without the acknowledgement number? BTW, nowhere in the FAQ they mention note down this number which is must to download form B :-( !

Sanjay

MAY BE ACKNOWLEDGEMENT NUMBER BE MENTIONED ON CHALLAN. CHECK YOUR BANK SITE AND DOWNLOAD CHALLAN AND NOTE ACKNOWLEDGEMENT NUMBER.

1 Like

Pramod Mishra (NA) (41 Points)
Replied 09 October 2013

Me and my wife have booked an under construction flat at Bangalore whose value is 52 lakhs. We have paid 9 lakhs to builders. Remaining money will be paid as per construction progress in installment. I think we have to fill up form 26QB twice i.e. one for my wife and other for me. If this is correct, So while filling 26QB form, Amount Paid to seller will be Rs 450000 in each Form 26 QB and TDS will be Rs 4500. Hence total TDS for both of us will be Rs 9000. Please let me know if this is correct, assuming 50 % share in the property between me and my wife.

My wife has no income and she is a join owner with me. In that case can I deposit the entire TDS on my name as buyer?

Also do I need to do the similar thing for each installment when we pay builder?