TRACES (TDS Reconciliation Analysis and Correction Enabling System)
General Question and Answer Of Form 26QB
General Question and Answer Of Form 26QB
Question (1) : What is TDS on property?
Answer : As per Finance Bill of 2013, TDS is applicable on sale of immoveable property wherein the sale consideration of the property is equal or exceeds or to 50,00,000 (Rupees Fifty Lakh). Sec 194 IA of the Income Tax Act, 1961 states that for all transactions with effect from June 1, 2013, Tax @ 1% should be deducted by the purchaser/buyer of the property at the time of making payment of sale consideration. Tax so deducted should be deposited to the Government Account through any of the authorized bank branches.
Question (2) : What are the points to be remembered by the Seller of the Property?
Answer : Following are the points to be remembered by the seller of the property:
• Provide a copy of PAN card to the Purchaser of the property for furnishing information regarding TDS to the Income Tax Department.
• Verify taxes deducted by the Purchaser in Part A2 of your Form 26AS Annual Tax Statement.
• Compare it with Form 16B issued by the Purchaser.
• Download form 16B from TRACES only
Question (3) :What are the points to be remembered by the purchaser/buyer of the Property?
Answer : Following are the points to be remembered by the buyer of the property :
• Deduct TDS @ 1% on the total sale consideration.
• Collect the Permanent Account Number (PAN) of the Seller and verify the same with the Original PAN card.
• PAN of seller as well as Purchaser/buyer should be mandatorily furnished in the online Form 26QB (statement cum challan form) for furnishing information regarding the sale transaction of valid PANs.
• Do not commit any error in quoting the PAN or other details in the online Form 26QB (statement cum challan form) as there is no online mechanism for rectification of any error.
• Verify tax deducted and deposited from Part F of your Form 26AS Annual Tax Statement.
• Note down 9 digits alphanumeric acknowledgment number generated on filing of 26QB which is required for placing request of form 16B.
• Download form 16B From TRACES portal and issue it to the seller of the property.
Question (4) : What is Form 16B?
Answer : Form 16B is the TDS certificate to be issued by the deductor (purchaser/buyer of immovable property) to the deductee (Seller of immovable property) in respect of the taxes deducted on the sale of immovable property and deposited into the Government Account.
Question (5) : Which challan is used for depositing the amount deducted under section 194IA?
Answer : The deducted amount can be deposited using ITNS-280 under the minor head-800.
Question (6) : I am a purchaser/buyer, whether I should deduct TDS on Property from the amount exceeding the property value of 50 Lakhs or on the whole amount of property sold?
Answer : TDS is to be deducted on the total amount paid or credited to the seller. For example, if an amount of property sold is 70 Lakh, TDS will be deducted on total amount of the property i.e. 70 Lakh and not on 20 Lakh.
Best Regards,
