The Income Tax department simplified the process of paying TDS on property with the introduction of e-payment facility. Nonetheless, there are some conditions that have to be met to proceed with the payment -
A financial institution should be authorised by NSDL-TIN. You can check their website for a list of approved financial organisations.
Net-banking features must be activated in order to make the payment.
After verifying these conditions, you can follow these steps to ensure a hassle-free payment process.
It is advised you start by filling up Form 26QB before depositing the required amount. Taxpayers can avail this form from NSDL-TIN’s official website.
Keep necessary documents ready, including –
Address proof of property.
Address proof of both buyer and seller.
Date of sale agreement.
Value of the property.
Filling these details is mandatory before you proceed with the payment. These documents are also required if someday you plan to avail a loan against property.
TDS on property should be deducted after confirmation of the payment. Taxpayers also receive a 9-digit alpha-numeric code and a challan upon a successful transaction.
The challan contains bank details along with information related to the transaction and a unique CIN. It is advised that you preserve these for future references.
Sellers also have to submit Form 16B.
It is a buyer’s responsibility to submit the TDS certificate to the seller within 15 days from its due date.
The e-payment facility is known to simplify the process of paying TDS significantly. These steps should help you pay your TDS with relative ease.