TDS as buyer of property

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This discussion clarifies the process for buyers of property in India who have paid TDS via Form 26QB. It confirms that Form 26QB submission acts as the TDS return for this specific transaction, meaning no separate TDS return needs to be filed. While no further compliance is strictly required, buyers should ideally download and issue Form 16B to the seller. The buyer generally doesn't need to mention the TDS in their own Income Tax Return unless claiming specific deductions like under Section 54/54F.

Priya

Priya (Querist)
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25 June 2024 I purchased a property in India for which I submitted TDS via "e-Pay Tax" on income tax website in Jan 2024.
(Challan-cum-statement of deduction of tax under section 194-IA (Form 26QB))

1) Is that the same as "TDS Return"?
On some websites I read that "TDS Return" needs to be filed for those deducting TDS.

2) Is that any other step I need to perform as a buyer?

3) Is there anything I need to mention in the Income Tax Return that I file? I'm assuming that the seller needs to put in the TDS details in their ITR, and I don't need to mention it in my ITR.

My Form 26AS, shows the TDS Entry under "PART-VIII-Details of Tax Deducted at Source u/s 194IA/ 194IB /194M/194S (For Buyer/Tenant of Property /Person making payment to contractors or Professionals / Buyer of Virtual Digital Asset)"

Thanks.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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25 June 2024 1. Yes. Applicable when property purchased from Resident Indian. In this case no separate TDS return needs to be filed.
2. No other compliance, except you needed to download form 16B, & issued it to seller. But now the time period over.
3. No. you need not mention it in your ITR unless you are claiming deduction u/s. 54/54F IT act.
4. Correct. Seller will have to declare it in his/her ITR & pay additional tax liability, if any.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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29 August 2024 Good Luck.

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