17/03/2024
Did you know, How to deposit TDS on purchase of property?
To deposit TDS (Tax Deducted at Source) on the purchase of property in India, you typically follow these steps:
1. Get TAN: If you're the buyer, ensure you have a Tax Deduction and Collection Account Number (TAN). If you don't have one, you need to apply for it.
2. Use Form 26QB: Fill out Form 26QB, which is available on the Income Tax Department's website or through authorized vendors. This form requires details such as PAN of buyer and seller, property details, transaction amount, etc.
3. Make Payment: Calculate the TDS amount based on the property's sale value and applicable TDS rate. Deposit this amount using online banking or through authorized banks.
4. Challan Generation: After the successful payment, generate the challan and keep it for your records.
5. TDS Certificate: Once the TDS is deposited, the buyer needs to furnish TDS certificate (Form 16B) to the seller within a specified time.
6. File TDS Return: Finally, file the TDS return within the due date mentioning the details of TDS deducted and deposited.
It's essential to adhere to these steps to ensure compliance with tax regulations related to property transactions in India.
It’s advisable to consult with a tax advisor or chartered accountant for proper guidance and assistance in TDS compliance. We at Ebex Consulting also help our clients in filling returns for TDS on purchase of house or property.
https://ebexconsulting.com/tds-on-purchase-of-property/
When an individual buys a property, the buyer is required to deduct a specified percentage of the property’s value as TDS.