As per Section 194-IA of the Income Tax Act, if an individual purchases an immovable asset worth Rs.50 lakh or more, he/she will be liable for TDS on property purchase. The amount is deducted from the payment made to a seller.
A buyer can proceed with the following process to deposit the TDS amount to the government and file return online is as follows –
- Go to NSDL-TIN’s official website and opt for TDS on Sale of Property’.
- Next, click on the online form of property TDS for e-payment.
- Follow it by opening Form 26QB dedicated for TDS payment on a property.
- Select any one of the following for TDS on purchase of property –
-> 021 - If purchase is made for an individual use.
-> 022 - If purchase is made on a company/organizations behalf.
- Next, you need to fill the financial year, details of the buyer as well as seller of such property.
- Fill in other essential details like property’s address, agreement date, property value, etc.
- Once filled, proceed to make the payment via net banking, debit card, etc.
- Confirm payment of TDS on property by entering the captcha.
- Make payment by confirming your account details.
TDS payment should be made within 7 days from the month-end in which the buyer deducted TDS, otherwise it attracts penalty.
Also, the acknowledgement so obtained serves as an essential document when availing high-value advances like a loan against property. Plus, timely payment of TDS on property’s purchase also ensures you meet your tax liabilities without fail.