How To File TDS On Property In 2024

How To File TDS On Property In 2024?

When dealing with real estate, one encounters various terms, and Tax Deducted at Source (TDS) is a crucial one. In 2024, as per the Income Tax Act of 1961, Section 194-IA dictates that TDS is applicable only to immovable properties like buildings and plots.

Threshold and Rate:

If a buyer pays over Rs 50 lakh for real estate, they must deduct 1% of the entire transaction price as TDS. This ensures tax compliance and is deducted at the source, making it an indirect tax.

How to File TDS on Property:

• Start by entering your mobile number and validating your PAN.
• Select “New Payment” and proceed with 26QB (TDS on Property Sale).
• Complete the form with necessary details like PAN, email addresses, property specifics, payment details, and tax information.
• Choose your preferred payment method: online banking, debit card, bank, or NEFT/RTGS payment gateway.
• After payment, receive an acknowledgment with CIN, payment details, and bank account information.
• After five days, download the file from the TRACES portal at www.tdscpc.gov.in.

Downloading Form 16B:

• Log in to the TRACES site using your PAN.
• In the Downloads section, select Form 16B for the buyer.
• Provide property details and seller’s PAN, acknowledgment number, and assessment year.
• Click “Proceed” and on the confirmation box, select “Submit Request.”
• After the download request is sent, check the request number and click the HTTP download button.

Changes in TDS Rules for Immovable Properties:

The government has modified TDS provisions for immovable assets. Fees for maintenance, club membership, energy, water facilities, parking, and other advances will now be included in the property cost when determining TDS.

TDS on Property Purchase from NRI Seller:

When purchasing from an NRI, deduct 20% TDS along with 4% cess. If the NRI seller sells within two years of buying, deduct 30% TDS plus 4% cess.

Points to Remember:

• No TDS if the selling value is less than Rs 50 lakh.
• No need for a Tax Deduction Account Number (TAN) for buyers.
• Without a PAN, TDS is 20%.

Conclusion:

TDS ensures tax compliance, widens the tax base, and secures a consistent revenue stream for the government. While it shares the tax collection burden, it also benefits taxpayers by providing a systematic approach to tax payment.

Read Also:- Points to Remember before apply Tax Deducted at Source (TDS)